Financial Management Assignment Homework help
Profit is the goal of capitalistic economy. Managers in such economy should know the time and risk factors in discharging financial activity. Maximizing present worth of present value of a firm is important for managerial decision. Decisions are made to increase firm value. The financial manager of a firm should understand the importance of liquidity and also know the art of meeting the bills by keeping sufficient cash. Knowledge on finance enables a manager to invest excess should know the technique of investing excess cash in money market. Various financial tools are necessary to understand the following subjects:
• Financial statements
• Working capital management
• Ratio analysis
The aforesaid techniques help the financial manager anticipate sales and cash. He should know to make investment in long term assets that help a firm to allocate capital. Choosing competing such investment is capital budgeting. The allocation decision is similar to economic decision. The entire organization is taken into consideration. Scarce resources are allocated among competing alternative uses. Long term capital is generally allocated within the firm. The cost of capital determines cost of funds. Possible gain and risks are associated with debt and equity financing. Financial leverage may increase investors’ return on their money. Money and its management are the contents of finance. Financial system understanding represents plan of action. The subject is a separate management discipline requiring theoretical understanding for decision making. It draws on analytical tools and information. Accounting and economics help financial managers in making decision. The subject is descriptive in nature. A study on economic environment is essential.
Economic environment is helpful in understanding the subject. Commercial banking system deals with financial matters. The fiscal policy, monetary policy and security exchange board regulations provide lot of inputs in financial decision making at micro level. The effect of these institutions and their policies give lot of knowledge in financial matters. Business managers and students of management should know the working of these institutions.
Individual householders, business, government and foreign trade are the components of Indian economy. All of them are interdependent. A financial intermediary transfers funds that are unused and transfer the household savings to business. The resources are transferred to goods and services that flow back to households. The study of the banking system is important. Successful business administration requires successful financial management. A financial manager should know the interpretation of financial statements using appropriate financial tools and techniques.
Guidance will be given to students of management in various topics on financial management.
Management Homework Assignment