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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:
Incidental Finance function
This function is much more than an implementation and maintenance type and covers the following functions:
Selecting the source of the finance: after prepare of the capital structure an appropriate source of the funds. Various sources of the finance may be raised include share capital
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Question- Under a hire purchase deal structured by X Finance Ltd. for Y Corporation, the finance company has offered to finance the purchase of equipment that costs Rs. 200 lakh.
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