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The Need For Finance Management For A Business

u25cftFor Starting Up- Depending on the type of business in terms of purchasing assets and employing people.<br>u25cftThe financing decision- Quantum of finance to be raised for long- term sources<br>u25cftMaintaining Working Capital- It needs to maintain the money for completing the short- term goals of the company.<br>u25cftAcquisition- It requires to find money to pay for the acquisition. <br>If you are occupied with a lot of assignments and searching for reliable assignment writing services then contact us.<br>Visit: https://www.sampleassignment.com/finance-assignment-help.html

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The Need For Finance Management For A Business

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  1. The Need For Finance Management For A Business

  2. For Starting Up- Depending on the type of business in terms of purchasing assets and employing people. • Maintaining Working Capital- It needs to maintain the money for completing the short- term goals of the company. • Acquisition- It requires to find money to pay for the acquisition

  3. The Scope Of Financial Management The scope of financial management is divided into two broad categories: The traditional approach- This approach was popular in the early stage, it limits the role of financial management to raising funds needed by corporate enterprises to meet their financial needs. Modern approach- This is the approach used by modern people, it provides the conceptual and analytical framework for financial decision- making

  4. Major Decisions Regarding Financial Management? • The financing decision- Quantum of finance to be raised for long- term sources. • The investment decision- Decisions related to the firm’s funds are invested in different assets to earn the highest possible returns. • The dividend decision- It is the portion of profit that is distributed to the shareholder.

  5. The Importance Of Financial Management • It helps in forecasting what will happen in the future under distinct business situations. • It helps in ignoring business shocks. • It helps in coordinating with other business functions.

  6. What Is Working Capital? • It is the investment that facilitates the smooth day to day business operations. • It contributes less to the profits than fixed assets. • It represents operation liquidity to the business or organisation. • A company may be endowed with assets and profitability. • Positive working capital is required to ensure that the firm can continue its operations under sufficient funds.

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