Illustrate the nature of financial management, Financial Management

Assignment Help:

Q. Illustrate the Nature of Financial Management?

Less Descriptive as well as More Analytical: - Financial management is less descriptive and more analytical. Because of the development of new statistical and accounting techniques of financial analysis the financial management chooses the best option out of the many possible alternatives.

Continuous Function: - Financing is an incessant function. Additionally to the raising of finance, there is a continuous requirement for planning and controlling the finances of an enterprise. A firm carry out finance functions continuously in the normal course of the business.

Different from Accounting Function: - There are major difference between the accounting and finance function. Accounting generates information or else data whereas in the finance function the data reanalysed and used for the purpose of decision making.

Wide Scope: - There is broad scope of financial management. It is concerned not merely with the raising of finance but as well with the allocation and efficient use of such finance.

Centralised Nature: - Financial management is essential in nature. It is neither probable nor desirable to decentralize the financial responsibilities.

Measurement of Performance: - Financial management is anxious with the wise use of finance. It fixes certain norms as well as standards against which the benefits of an investment decisions are matched.

Inseparable Relationship among Finance and other Activities: - There exists an inseparable relationship among finance on the one hand and marketing, production and other activities on the other. All other activities are connected to finance.

Applicable to All Kinds of Organisations: - It is applicable to every forms of organization whether corporate or non-corporate such as sole proprietorship as well as partnership firms etc.


Related Discussions:- Illustrate the nature of financial management

Interest rate anticipation strategies, Active bond management depends...

Active bond management depends on an economic scenario in order to forecast the movements of yield curve. A portfolio manager skillfully builds a portfolio wit

Operating cycle, what is the applicability of the operating cycle in a vege...

what is the applicability of the operating cycle in a vegetaion farm in Uganda

Qualitative analysis, Does your company have a cutting-edge product idea th...

Does your company have a cutting-edge product idea that will blaze new trails in its industry? Is it properly retiring out-of-date products and keeping current with new consumer de

Decentralization, Decentralization This is a company power structure i...

Decentralization This is a company power structure in which authority and decision-making responsibility are diffused throughout various stages of an organization. Decentraliz

Historical inflation and stock value experience, Historical Inflation and S...

Historical Inflation and Stock Value Experience The experimental evidence denies the status of stocks as a good hedge against inflation. A study conducted by Ibbotson and Brins

Graduated-payment mortgages (gpms), The payments on GPMs unlike the p...

The payments on GPMs unlike the payments on traditional mortgages are not equal. The payments under GPMs start at a relatively low level and rise for a specified

Treasury bonds or t-bonds or the long bond, Treasury bonds are the bo...

Treasury bonds are the bonds issued with maturities greater than 10 years. However, these are commonly issued with a maturity of 30 years. Like T-notes, these bon

Why do we focus on cash flows instead of profits, Why do we focus on cash f...

Why do we focus on cash flows instead of profits when evaluating proposed capital budgeting projects? We focus on cash flows at the place of profits when evaluating proposed ca

Calculate the effective annual rate, I keep getting different answers in ex...

I keep getting different answers in excel and the financial calculator. is there someone who can walk me through this problem step by step: You plan to buy a new house for $250,0

Write Your Message!

Captcha
Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd