SlideShare a Scribd company logo
FINANCE
FUNCTION
FINANCE FUNCTION
Finance function is the process of acquiring
and utilising funds by a business
The main finance function is the
procurement of necessary funds for the
business. Along with the procurement of
funds ,the effective utilisation and control
of funds obtained is also included in
thefinance function
In order to understand
finance function properly it is
essential to understand the
following two approaches
Traditional Approach
Modern Approach
Traditional Approach
According to this approach the main
function of finance was confined to the
procurement of funds
In brief the main features of this approach
were are follows:
o Raising funds: The main function of
finance was to procure and manage
required funds from various sources for
achieving the predetermined objective of
enterprise
Episodic Function: Finance function was
not related to day-by-day operations of
the enterprise but it was concerned with
procurement of funds to finance
promotion, expansion or diversification
of activities
Outsiders-looking-in Approach: the
function of finance was to lay more
emphasis on the guidance of the
investors rather than the internal
management of enterprise
Long-term Financing: This approach
Emphasis more upon sources and problems of long term financing .
 Descriptive Nature : The treatment of different aspects of finance was more of a
descriptive nature rather than analytical
According to this traditional approach the scope of financial management or financial
function was confined to raising of funds from external sources
Modern Approach
According to this approach, finance function it includes both acquisition (source) of
funds as well as the effective utilisation of funds into productive use
In modern approach the proper utilisation of funds is considered
The cost of raising funds and the return from their use should be compared, the funds
raise should b able to give more returns then the cost involved in procuring them
The raising cost of funds is always less than the return from the invested funds
Now the most of the business follow the modern approach
JAIPUR NATIONAL
UNIVERSITY
SEEDLING SCHOOL OF BUSINESS
AND MANAGEMENT
Naveen singh
Bcom honors
1 year (EAFM)

More Related Content

What's hot

Chapter 2 internal control
Chapter 2 internal controlChapter 2 internal control
Chapter 2 internal control
Dr Manu H Natesh
 
Security Analysis And Portfolio Managment
Security Analysis And Portfolio ManagmentSecurity Analysis And Portfolio Managment
Security Analysis And Portfolio Managment
Pacific Institute Of Management
 
Financial Statement Analysis
Financial Statement AnalysisFinancial Statement Analysis
Financial Statement Analysis
Home
 
Receivable management presentation1
Receivable management presentation1Receivable management presentation1
Receivable management presentation1
shruthi nair
 
Cash budget
Cash budgetCash budget
Cash budget
VijaySomasePatil
 
Ebit - Eps Analysis
Ebit -  Eps AnalysisEbit -  Eps Analysis
Ebit - Eps Analysis
DevTech Finance
 
The investment environment
The investment environmentThe investment environment
The investment environment
Mahesh Waran
 
Credit monitoring
Credit monitoringCredit monitoring
Credit monitoring
Abinash Mandilwar
 
Risk and return measurement
Risk and return measurementRisk and return measurement
Risk and return measurement
neelakshi81
 
Cash management- Need, Motives, Models of Cash Management, Boumol Model, Mill...
Cash management- Need, Motives, Models of Cash Management, Boumol Model, Mill...Cash management- Need, Motives, Models of Cash Management, Boumol Model, Mill...
Cash management- Need, Motives, Models of Cash Management, Boumol Model, Mill...
Dr. Toran Lal Verma
 
Capital structure-theories
Capital structure-theoriesCapital structure-theories
Capital structure-theories
Dr. Soheli Ghose Banerjee
 
Financial statements of bank
Financial statements of bankFinancial statements of bank
Financial statements of bank
AsHra ReHmat
 
Horizontal and Vertical Analysis | Accounting
Horizontal and Vertical Analysis | AccountingHorizontal and Vertical Analysis | Accounting
Horizontal and Vertical Analysis | Accounting
Transweb Global Inc
 
Working capital
Working capitalWorking capital
Working capital
Suresh Thengumpallil
 
Working capital management
Working capital managementWorking capital management
Working capital management
ankita3590
 
Liquidity decision in banking system
Liquidity decision in banking systemLiquidity decision in banking system
Liquidity decision in banking system
Milan Verma
 
Receivable management or accounts receivable management
Receivable management or accounts receivable managementReceivable management or accounts receivable management
Receivable management or accounts receivable management
Mohammed Jasir PV
 
ALL ABOUT Working capital management
ALL ABOUT Working capital management ALL ABOUT Working capital management
ALL ABOUT Working capital management
Mohammed Jasir PV
 
Investment management
Investment managementInvestment management
Investment management
hadi Hedayati
 
Cash management
Cash managementCash management
Cash management
Srinivas Methuku
 

What's hot (20)

Chapter 2 internal control
Chapter 2 internal controlChapter 2 internal control
Chapter 2 internal control
 
Security Analysis And Portfolio Managment
Security Analysis And Portfolio ManagmentSecurity Analysis And Portfolio Managment
Security Analysis And Portfolio Managment
 
Financial Statement Analysis
Financial Statement AnalysisFinancial Statement Analysis
Financial Statement Analysis
 
Receivable management presentation1
Receivable management presentation1Receivable management presentation1
Receivable management presentation1
 
Cash budget
Cash budgetCash budget
Cash budget
 
Ebit - Eps Analysis
Ebit -  Eps AnalysisEbit -  Eps Analysis
Ebit - Eps Analysis
 
The investment environment
The investment environmentThe investment environment
The investment environment
 
Credit monitoring
Credit monitoringCredit monitoring
Credit monitoring
 
Risk and return measurement
Risk and return measurementRisk and return measurement
Risk and return measurement
 
Cash management- Need, Motives, Models of Cash Management, Boumol Model, Mill...
Cash management- Need, Motives, Models of Cash Management, Boumol Model, Mill...Cash management- Need, Motives, Models of Cash Management, Boumol Model, Mill...
Cash management- Need, Motives, Models of Cash Management, Boumol Model, Mill...
 
Capital structure-theories
Capital structure-theoriesCapital structure-theories
Capital structure-theories
 
Financial statements of bank
Financial statements of bankFinancial statements of bank
Financial statements of bank
 
Horizontal and Vertical Analysis | Accounting
Horizontal and Vertical Analysis | AccountingHorizontal and Vertical Analysis | Accounting
Horizontal and Vertical Analysis | Accounting
 
Working capital
Working capitalWorking capital
Working capital
 
Working capital management
Working capital managementWorking capital management
Working capital management
 
Liquidity decision in banking system
Liquidity decision in banking systemLiquidity decision in banking system
Liquidity decision in banking system
 
Receivable management or accounts receivable management
Receivable management or accounts receivable managementReceivable management or accounts receivable management
Receivable management or accounts receivable management
 
ALL ABOUT Working capital management
ALL ABOUT Working capital management ALL ABOUT Working capital management
ALL ABOUT Working capital management
 
Investment management
Investment managementInvestment management
Investment management
 
Cash management
Cash managementCash management
Cash management
 

Similar to finance function

Finance function
Finance functionFinance function
Finance function
NaveenSingh584098
 
Financial management
Financial managementFinancial management
Financial management
Saranya karthick
 
Meaning Of Business Finance
Meaning Of Business FinanceMeaning Of Business Finance
Meaning Of Business Finance
yashpal01
 
Meaning Of Business Finance
Meaning Of Business FinanceMeaning Of Business Finance
Meaning Of Business Finance
yashpal01
 
Lakshmi ppt
Lakshmi  pptLakshmi  ppt
Lakshmi ppt
suganya mvl
 
Introduction to financial management
Introduction to financial managementIntroduction to financial management
Introduction to financial management
Rahul Goyal
 
itroduction.ppt
itroduction.pptitroduction.ppt
itroduction.ppt
DerejeUrgecha1
 
financial decisions and its types
financial decisions and its typesfinancial decisions and its types
financial decisions and its types
Vivek Lohani
 
Approaches to finance functions
Approaches to finance functionsApproaches to finance functions
Approaches to finance functions
Kd Dongre
 
Financial-management-ppt.pptx
Financial-management-ppt.pptxFinancial-management-ppt.pptx
Financial-management-ppt.pptx
Prabh Batth
 
A study-on-ratio-analysis1
A study-on-ratio-analysis1A study-on-ratio-analysis1
A study-on-ratio-analysis1
Rinto Joy Nereparambil
 
CH-1_FM.pptx
CH-1_FM.pptxCH-1_FM.pptx
CH-1_FM.pptx
nemikshah
 
Unit 1-fm-intrduction-1 ppt
Unit 1-fm-intrduction-1 pptUnit 1-fm-intrduction-1 ppt
Finacial managment www.it-workss.com
Finacial managment   www.it-workss.comFinacial managment   www.it-workss.com
Finacial managment www.it-workss.com
Varunraj Kalse
 
IARE_FM_Lecture _Notes_2-converted.pdf
IARE_FM_Lecture _Notes_2-converted.pdfIARE_FM_Lecture _Notes_2-converted.pdf
IARE_FM_Lecture _Notes_2-converted.pdf
vishwasmahajan6
 
Concept, evolution, functions, objectives, scope
Concept, evolution, functions, objectives, scopeConcept, evolution, functions, objectives, scope
Concept, evolution, functions, objectives, scope
Vandana029
 
Financial management
Financial management Financial management
Financial management
Aqib ali
 
Financialmanagement
Financialmanagement Financialmanagement
Financialmanagement
INDUS EXIMTECH PVT. LTD
 
finacial management .pptx
finacial management .pptxfinacial management .pptx
finacial management .pptx
SelamMubarek
 
Financial mgt
Financial mgtFinancial mgt

Similar to finance function (20)

Finance function
Finance functionFinance function
Finance function
 
Financial management
Financial managementFinancial management
Financial management
 
Meaning Of Business Finance
Meaning Of Business FinanceMeaning Of Business Finance
Meaning Of Business Finance
 
Meaning Of Business Finance
Meaning Of Business FinanceMeaning Of Business Finance
Meaning Of Business Finance
 
Lakshmi ppt
Lakshmi  pptLakshmi  ppt
Lakshmi ppt
 
Introduction to financial management
Introduction to financial managementIntroduction to financial management
Introduction to financial management
 
itroduction.ppt
itroduction.pptitroduction.ppt
itroduction.ppt
 
financial decisions and its types
financial decisions and its typesfinancial decisions and its types
financial decisions and its types
 
Approaches to finance functions
Approaches to finance functionsApproaches to finance functions
Approaches to finance functions
 
Financial-management-ppt.pptx
Financial-management-ppt.pptxFinancial-management-ppt.pptx
Financial-management-ppt.pptx
 
A study-on-ratio-analysis1
A study-on-ratio-analysis1A study-on-ratio-analysis1
A study-on-ratio-analysis1
 
CH-1_FM.pptx
CH-1_FM.pptxCH-1_FM.pptx
CH-1_FM.pptx
 
Unit 1-fm-intrduction-1 ppt
Unit 1-fm-intrduction-1 pptUnit 1-fm-intrduction-1 ppt
Unit 1-fm-intrduction-1 ppt
 
Finacial managment www.it-workss.com
Finacial managment   www.it-workss.comFinacial managment   www.it-workss.com
Finacial managment www.it-workss.com
 
IARE_FM_Lecture _Notes_2-converted.pdf
IARE_FM_Lecture _Notes_2-converted.pdfIARE_FM_Lecture _Notes_2-converted.pdf
IARE_FM_Lecture _Notes_2-converted.pdf
 
Concept, evolution, functions, objectives, scope
Concept, evolution, functions, objectives, scopeConcept, evolution, functions, objectives, scope
Concept, evolution, functions, objectives, scope
 
Financial management
Financial management Financial management
Financial management
 
Financialmanagement
Financialmanagement Financialmanagement
Financialmanagement
 
finacial management .pptx
finacial management .pptxfinacial management .pptx
finacial management .pptx
 
Financial mgt
Financial mgtFinancial mgt
Financial mgt
 

More from NaveenSingh584098

MONETARY POLICY
MONETARY POLICY MONETARY POLICY
MONETARY POLICY
NaveenSingh584098
 
Public revenue
Public revenuePublic revenue
Public revenue
NaveenSingh584098
 
Monetary Policy
Monetary PolicyMonetary Policy
Monetary Policy
NaveenSingh584098
 
Demontisation
DemontisationDemontisation
Demontisation
NaveenSingh584098
 
Monetary policy
Monetary policyMonetary policy
Monetary policy
NaveenSingh584098
 
departmental accounting
departmental accountingdepartmental accounting
departmental accounting
NaveenSingh584098
 
Accounting for non profit organisation
Accounting for non profit organisationAccounting for non profit organisation
Accounting for non profit organisation
NaveenSingh584098
 
Valuation of good will
Valuation of good willValuation of good will
Valuation of good will
NaveenSingh584098
 
break even analysis
break even analysisbreak even analysis
break even analysis
NaveenSingh584098
 

More from NaveenSingh584098 (9)

MONETARY POLICY
MONETARY POLICY MONETARY POLICY
MONETARY POLICY
 
Public revenue
Public revenuePublic revenue
Public revenue
 
Monetary Policy
Monetary PolicyMonetary Policy
Monetary Policy
 
Demontisation
DemontisationDemontisation
Demontisation
 
Monetary policy
Monetary policyMonetary policy
Monetary policy
 
departmental accounting
departmental accountingdepartmental accounting
departmental accounting
 
Accounting for non profit organisation
Accounting for non profit organisationAccounting for non profit organisation
Accounting for non profit organisation
 
Valuation of good will
Valuation of good willValuation of good will
Valuation of good will
 
break even analysis
break even analysisbreak even analysis
break even analysis
 

Recently uploaded

快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
yeuwffu
 
Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)
AntoniaOwensDetwiler
 
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
Donc Test
 
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
5spllj1l
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
28xo7hf
 
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
2g3om49r
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
ResolutionFoundation
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
Majid Iqbal
 
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
234knry
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
rlo9fxi
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
ynfqplhm
 
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdfSeeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
Ashis Kumar Dey
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
ResolutionFoundation
 
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
5spllj1l
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
taqyea
 
Dr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment LeaderDr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment Leader
msthrill
 
Machine Learning in Business - A power point presentation.pptx
Machine Learning in Business - A power point presentation.pptxMachine Learning in Business - A power point presentation.pptx
Machine Learning in Business - A power point presentation.pptx
mimiroselowe
 
Upanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishadUpanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishad
ajaykumarxoxo04
 
Enhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial InstitutionsEnhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial Institutions
shruti1menon2
 
Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...
Labour Market Information Council | Conseil de l’information sur le marché du travail
 

Recently uploaded (20)

快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
快速办理(RWTH毕业证书)德国亚琛工业大学毕业证录取通知书一模一样
 
Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)Independent Study - College of Wooster Research (2023-2024)
Independent Study - College of Wooster Research (2023-2024)
 
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
TEST BANK Principles of cost accounting 17th edition edward j vanderbeck mari...
 
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
快速办理(美国Fordham毕业证书)福德汉姆大学毕业证学历证书一模一样
 
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
真实可查(nwu毕业证书)美国西北大学毕业证学位证书范本原版一模一样
 
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
做澳洲澳大利亚国立大学毕业证荣誉学位证书原版一模一样
 
Ending stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across ScotlandEnding stagnation: How to boost prosperity across Scotland
Ending stagnation: How to boost prosperity across Scotland
 
Fabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio ProblemFabular Frames and the Four Ratio Problem
Fabular Frames and the Four Ratio Problem
 
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
高仿英国伦敦艺术大学毕业证(ual毕业证书)文凭证书原版一模一样
 
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
快速制作美国迈阿密大学牛津分校毕业证文凭证书英文原版一模一样
 
South Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma TranscriptSouth Dakota State University degree offer diploma Transcript
South Dakota State University degree offer diploma Transcript
 
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdfSeeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
Seeman_Fiintouch_LLP_Newsletter_Jun_2024.pdf
 
The state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation EventThe state of welfare Resolution Foundation Event
The state of welfare Resolution Foundation Event
 
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
在线办理(UMASS毕业证书)马萨诸塞大学阿默斯特分校毕业证完成信一模一样
 
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
一比一原版美国新罕布什尔大学(unh)毕业证学历认证真实可查
 
Dr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment LeaderDr. Alyce Su Cover Story - China's Investment Leader
Dr. Alyce Su Cover Story - China's Investment Leader
 
Machine Learning in Business - A power point presentation.pptx
Machine Learning in Business - A power point presentation.pptxMachine Learning in Business - A power point presentation.pptx
Machine Learning in Business - A power point presentation.pptx
 
Upanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishadUpanishads summary with explanations of each upnishad
Upanishads summary with explanations of each upnishad
 
Enhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial InstitutionsEnhancing Asset Quality: Strategies for Financial Institutions
Enhancing Asset Quality: Strategies for Financial Institutions
 
Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...Does teamwork really matter? Looking beyond the job posting to understand lab...
Does teamwork really matter? Looking beyond the job posting to understand lab...
 

finance function

  • 2. FINANCE FUNCTION Finance function is the process of acquiring and utilising funds by a business The main finance function is the procurement of necessary funds for the business. Along with the procurement of funds ,the effective utilisation and control of funds obtained is also included in thefinance function
  • 3. In order to understand finance function properly it is essential to understand the following two approaches Traditional Approach Modern Approach
  • 4. Traditional Approach According to this approach the main function of finance was confined to the procurement of funds In brief the main features of this approach were are follows: o Raising funds: The main function of finance was to procure and manage required funds from various sources for achieving the predetermined objective of enterprise
  • 5. Episodic Function: Finance function was not related to day-by-day operations of the enterprise but it was concerned with procurement of funds to finance promotion, expansion or diversification of activities Outsiders-looking-in Approach: the function of finance was to lay more emphasis on the guidance of the investors rather than the internal management of enterprise Long-term Financing: This approach
  • 6. Emphasis more upon sources and problems of long term financing .  Descriptive Nature : The treatment of different aspects of finance was more of a descriptive nature rather than analytical According to this traditional approach the scope of financial management or financial function was confined to raising of funds from external sources
  • 7. Modern Approach According to this approach, finance function it includes both acquisition (source) of funds as well as the effective utilisation of funds into productive use In modern approach the proper utilisation of funds is considered The cost of raising funds and the return from their use should be compared, the funds raise should b able to give more returns then the cost involved in procuring them
  • 8. The raising cost of funds is always less than the return from the invested funds Now the most of the business follow the modern approach
  • 9. JAIPUR NATIONAL UNIVERSITY SEEDLING SCHOOL OF BUSINESS AND MANAGEMENT Naveen singh Bcom honors 1 year (EAFM)