b.com [cbcs]

  Sources of finance google-site-verification: google484964abe3aab94b.html Finance is the lifeblood of business concerns because it is interlinked with all activities performed by business concerns. Arrangement of the required finance to each department of business concern is highly complex and needs a careful decision. The Quantum of finance may depend upon the nature and situation of the business concern. But, the requirement of finance is broadly classified into two parts.    1.     Long-term financial requirement    2.     Short-term financial requirement   1.     Long-term financial requirement- The long-term financial requirement means the finance needed to acquire land and building for a business concern, purchase of plant and machinery, and other fixed expenditures. The long-term financial requirement is also called fixed capital requirements. Fixed capital is the capital used to purchase...

  Functions of financial manager The finance function is one of the major parts of a business organization, which involves the permanent, and continuous process of the business concern. Finance is one of the interrelated functions which deal with personal function, marketing function, production function, and research and development activities of the business concern. At present, every business concern concentrates more on the field of finance because it is a very emerging part that reflects the entire operational and profitability position of the concern. Deciding the proper financial function is the essential and ultimate goal of the business organization.                                                   Financial management is one of ...

  Objectives of financial management The objective of financial management may be broadly divided into two parts such as: 1.       Profit maximization 2.       Wealth maximization Profit maximization –                The main aim of any kind of economic activity is to earn profit. A business concern also functions mainly to earn profit. Profit is the measuring technique to understand the business efficiency of the concern. Profit maximization is also the traditional and narrow approach, which aims to maximize the profit of the concern. Favorable arguments for profit maximization The following important points are in support of the profit maximization objectives of the business concern. 1.       Main aim is earning profit. 2.       Profit is the parameter of the business concern. 3.   ...

1.       What is finance? Ans. Finance is the art and science of managing money. It includes financial instruments and financial services. The financial function is the procurement of funds and their effective utilization in business concerns, capital, funds, money, and amount. 2.       What is financial management? Ans. It is concerned with the efficient use of an important economic resource namely, capital funds. Financial management is mainly concerned with effective funds management in business. In simple words, financial management as practiced by business firms can be called corporate finance or business finance. 3.       Important functions of financial management Ans. Finance is the lifeblood of a business organization. It needs to meet the requirement of the business concerns. Every business concern must maintain adequate finance for the smooth running of the business concern and also mainta...