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

Dual aspect concept - accounting principle, Dual Aspect Concept - Accountin...

Dual Aspect Concept - Accounting Principle This is, no doubt, the basic concept in accounting.  Under this concept, each transaction has got a two-fold aspect: (i) yielding

Market capitalization, Market Capitalization : Often referred to as marke...

Market Capitalization : Often referred to as market cap, it refers to the value of a company, that is, the market worth of its outstanding shares. A common misconception is that

Homework, Homework 1. Suppose you deposit $18,000 into an account today th...

Homework 1. Suppose you deposit $18,000 into an account today that earns 6% interest per year, and you do not withdraw the money for 21 years. What will be the balance in the acco

Show the difference between revenues and costs, • Sales revenue line drawn ...

• Sales revenue line drawn and labelled correctly and accurately • Fixed cost line (at $1,020) labelled and drawn accurately and correctly • Total costs line (starting at $1,

Finance charges on credit card, Jack needs to borrow $1,000 for the next ye...

Jack needs to borrow $1,000 for the next year. Bank South will give him the loan at 9 percent. Suncoast bank will give him the loan at 7 percent with a $50 loan origination fee. Fi

How does it help financial managers make business decisions, What is the in...

What is the investment opportunity schedule (IOS)?  How does it help financial managers make business decisions? The investment opportunity schedule illustrates graphically pro

Determine the return on invested capital, 1.      Consider the following tw...

1.      Consider the following two investment alternatives   Net cash flow   End of year Machine A Machine

What is control risk, What is Control risk That material misstatement c...

What is Control risk That material misstatement could take place and not be detected, or prevented on a timely basis, by accounting and internal control systems. All audits

Traditional yield measures, Current Yield Current y...

Current Yield Current yield is defined as the annual coupon interest received on the market price.          Current Yield =

What is gatt, What is GATT, and what is its goal? GATT is the General A...

What is GATT, and what is its goal? GATT is the General Agreement on Tariffs and Trade it is a agreement that seeks to decrease trade barriers among participant nations.

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