Scope of finance function, Financial Management

Assignment Help:

SCOPE OF FINANCE FUNCTION

In several businesses, based on the complexity and size of financial decision-making, the scope of finance function may be categorized into incidental finance function and executive finance function. The coverage of functions by both is in this way

Executive Finance function

This function generally is a main function and deals with decision-making and policy making tasks and incorporate with the following:

  • Determining the allocation of entire profits
  • Establishing asset management policies
  • Deciding upon sources & needs of external financing
  • Controlling and Estimating cash flows & requirements
  • Checking upon financial performance.

Incidental Finance function

This function is much more than an implementation and maintenance type and covers the following functions:

  • Supervision of disbursements & cash receipts
  • Safeguarding of cash balances
  • Custody & safeguarding of securities, and other valuable papers
  • Taking care of the mechanical factors of financing
  • Record keeping, reporting .

Related Discussions:- Scope of finance function

Describe the internal control procedures, Board should encourage a strong c...

Board should encourage a strong control culture. Manager's bonus must not only be linked to company profits but also linked to internal control procedures being adhered to. There m

State the concept of icq, ICQ's designed to: Identify possible area...

ICQ's designed to: Identify possible areas of weakness. Discover existence of internal controls. Questions are framed to highlight situations where: NO su

The chinese pension fund system, The Chinese Pension Fund System Mainlan...

The Chinese Pension Fund System Mainland China has a rapidly aging population. This is attributable to two main factors - the one-child policy plus substantial improvements in l

Calculate the total present value of the tax shield, Nortel is considering ...

Nortel is considering the purchase of a new  call routing system.  The system will cost $50M to purchase, an additional $7M to install, and will last for 30 years.  The CCA rate as

Explain about types of costs, Q. Explain about Types of costs? Thus two...

Q. Explain about Types of costs? Thus two types of costs are involved in keeping cash balance in a business- (i) Opportunity Cost (ii) Transaction Cost When cash balan

Leverage, evaluate the importance of leverage in financial management of a ...

evaluate the importance of leverage in financial management of a small scale company

Discount rate determinants, Discount Rate Determinants The discount rat...

Discount Rate Determinants The discount rate is the firm weighted average cost of capital. It represents the opportunity cost of investing creditors and shareholders funds in o

Determine profit for the year, The assets and liabilities of S Harrison as ...

The assets and liabilities of S Harrison as at 30 June 2012 are: On 1 July 2011 when the business commenced, Harrison owed $58,000 on the land and buildings and $1,200 on

Constructing the theoretical spot rate curve for treasuries, The following ...

The following treasury issues can be included for the construction of the curve: On-the-run treasury issues. On-the-run treasury issues and sele

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