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Yogita Ingle 4 years, 8 months ago
Financial Management: Its is concerned with optional procurement as well as the usage of finance . It means that finance procured should be intrested in such involvement. Therefore financial management aims at reducing cost , keeping risk under control and acheiving effective utilsation of money
Financial Planning: The Process of estimating the fund requirement of a business and specifing the sources of fund is called Financial Planning. It takes into consideration growth performance investmesnt and requirement of fund at a given period of time. Financial planning involves long term planning for investment and short term planning called budget.
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Yogita Ingle 4 years, 8 months ago
Factors affecting working capital :
- Nature of Business
The basic nature of a business influences the amount of working capital. A trading organisation and a service industry firm usually needs a smaller amount of working capital as compared to a manufacturing organisation. - - Scale of Operations
Organisations which operate on a large scale, their quantum of inventory and debtors required is generally high. Such organisations, therefore, require large amount of working capital as compared to the organisations which operate on a lower scale. - Business Cycle
Different phases of business cycles affect the requirement of working capital by a firm. In case of a boom, the sales as well as production are likely to be larger and, therefore, larger amount of working capital is required. As against this, the requirement for working capital will be lower during the period of depression, since the sales as well as production will be less. - Seasonal Factors
Some of the businesses have seasonal operations. During peak season, larger amount of working capital is required because of higher level of activity.
As against this, the level of activity as well as the requirement for working capital will be lower during the lean season. - Production Cycle/Operating Cycle
Production cycle is the time span between the receipt of raw material and their conversion into finished goods. 4
Some businesses have a longer production cycle while some have a shorter one. Duration and the length of production cycle affect the amount of funds required for raw materials and expenses.
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Meghna Thapar 4 years ago
One of the main functions of financial markets is to allocate capital. Capital markets especially facilitate the raising of capital while money markets facilitate the transfer of liquidity, in both cases matching those who have capital to those who need it.
Financial markets attract funds from investors and channel them to enterprises that use that capital to finance their operations and achieve growth, from startup phases to expansion–even much later in the firm’s life.
Without financial markets, borrowers would have difficulty finding lenders themselves. Intermediaries such as banks help in this process. Bank deposits are a simple way in which capital is allocated from a pool of savers to businesses that want to deploy it.
More complex transactions than a simple bank deposit require markets where lenders and their agents can meet borrowers and their agents, and where existing instruments can be resold. One example being a stock exchange.
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Meghna Thapar 4 years ago
HRD improves the growth of the employees. It develops new skills, knowledge and attitude, and makes them more competent. They become committed to their job, find themselves better equipped with problem-solving capabilities, and participate more in the organisation.
How human resource management benefits a company
- Organizational culture.
- Planning for change.
- Training and development.
- Management of conflicts.
- Health and safety.
- Recruitment and retention.
- Development of good relations.
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