Financial Management — objectives — profit maximization, wealth maximization — finance function — role of finance manager — strategic financial management — economic value added — time value of money.
Financial Management — objectives — profit maximization, wealth maximization — finance function — role of finance manager — strategic financial management — economic value added — time value of money.
FINANCIAL MANAGEMENT, ROLE OF FINANCIAL MANAGEMENT, IMPORTANCE OF FINANCIAL MANAGEMENT, FEATURES OF FINANCIAL MANAGEMENT, SCOPE OF FINANCIAL MANAGEMENT, FUTURE OF FINANCIAL MANAGEMENT, etc.
Understand the objectives and functions of financial management. Get your concepts clear on what does financial management mean, why is financial management improtant and many more.
Business Finance: Introduction to Business Finance, Meaning and Definition of Financial Management, Objectives of Financial Management- (Profit Maximization and Wealth Maximization), Modern Approach to Financial Management- (Investment Decision, Financing Decision, Dividend Policy Decision), Finance and its relation with other disciplines, Functions of Finance Manager
Cash flow is the flow of money in and out of the business. Managing your cash flow is vital for business survival and growth, even if you have existing cost savings programs in your organization.
The impact of disasters such as COVID-19 has driven the global economy into a recession and many businesses are only just trying to survive. Before taking drastic actions such as cutting salaries and staff, you might want to review your current cash flow performance to stem unnecessary cash outflow and eliminate waste in your processes.
To run your business effectively, you need to balance the timing and amount of your expenses with those of your income. This training presentation explains the various areas you need to consider when managing and improving cash flow in your business.
LEARNING OBJECTIVES:
1. Explain what cash flow means
2. Understand the cash flow cycle and importance of cash flow to a business
3. Identify major causes of cash flow problems
4. Define strategies to improve cash flow
5. Gain knowledge on eliminating waste to improve cash flow
6. Learn how to forecast cash flow
CONTENTS:
1. Introduction to cash flow
2. Causes of cash flow problems
3. Strategies to improve cash flow
4. Improving cash flow through waste elimination
5. Cash flow forecasting
To download this complete presentation, please visit: http://www.oeconsulting.com.sg
This presentation is made by Toran Lal Verma. Meaning, nature, and scope of Financial Management are discussed. scope and objectives of financial management have been discussed along with merits and demerits.
What is Finance, Approaches to finance function, Traditional approach, Modern approach, Limitations Of Traditional Approach, Profit maximization approach, Wealth Maximisation approach,
FINANCIAL MANAGEMENT, ROLE OF FINANCIAL MANAGEMENT, IMPORTANCE OF FINANCIAL MANAGEMENT, FEATURES OF FINANCIAL MANAGEMENT, SCOPE OF FINANCIAL MANAGEMENT, FUTURE OF FINANCIAL MANAGEMENT, etc.
Understand the objectives and functions of financial management. Get your concepts clear on what does financial management mean, why is financial management improtant and many more.
Business Finance: Introduction to Business Finance, Meaning and Definition of Financial Management, Objectives of Financial Management- (Profit Maximization and Wealth Maximization), Modern Approach to Financial Management- (Investment Decision, Financing Decision, Dividend Policy Decision), Finance and its relation with other disciplines, Functions of Finance Manager
Cash flow is the flow of money in and out of the business. Managing your cash flow is vital for business survival and growth, even if you have existing cost savings programs in your organization.
The impact of disasters such as COVID-19 has driven the global economy into a recession and many businesses are only just trying to survive. Before taking drastic actions such as cutting salaries and staff, you might want to review your current cash flow performance to stem unnecessary cash outflow and eliminate waste in your processes.
To run your business effectively, you need to balance the timing and amount of your expenses with those of your income. This training presentation explains the various areas you need to consider when managing and improving cash flow in your business.
LEARNING OBJECTIVES:
1. Explain what cash flow means
2. Understand the cash flow cycle and importance of cash flow to a business
3. Identify major causes of cash flow problems
4. Define strategies to improve cash flow
5. Gain knowledge on eliminating waste to improve cash flow
6. Learn how to forecast cash flow
CONTENTS:
1. Introduction to cash flow
2. Causes of cash flow problems
3. Strategies to improve cash flow
4. Improving cash flow through waste elimination
5. Cash flow forecasting
To download this complete presentation, please visit: http://www.oeconsulting.com.sg
This presentation is made by Toran Lal Verma. Meaning, nature, and scope of Financial Management are discussed. scope and objectives of financial management have been discussed along with merits and demerits.
What is Finance, Approaches to finance function, Traditional approach, Modern approach, Limitations Of Traditional Approach, Profit maximization approach, Wealth Maximisation approach,
Poonawalla Fincorp and IndusInd Bank Introduce New Co-Branded Credit Cardnickysharmasucks
The unveiling of the IndusInd Bank Poonawalla Fincorp eLITE RuPay Platinum Credit Card marks a notable milestone in the Indian financial landscape, showcasing a successful partnership between two leading institutions, Poonawalla Fincorp and IndusInd Bank. This co-branded credit card not only offers users a plethora of benefits but also reflects a commitment to innovation and adaptation. With a focus on providing value-driven and customer-centric solutions, this launch represents more than just a new product—it signifies a step towards redefining the banking experience for millions. Promising convenience, rewards, and a touch of luxury in everyday financial transactions, this collaboration aims to cater to the evolving needs of customers and set new standards in the industry.
Empowering the Unbanked: The Vital Role of NBFCs in Promoting Financial Inclu...Vighnesh Shashtri
In India, financial inclusion remains a critical challenge, with a significant portion of the population still unbanked. Non-Banking Financial Companies (NBFCs) have emerged as key players in bridging this gap by providing financial services to those often overlooked by traditional banking institutions. This article delves into how NBFCs are fostering financial inclusion and empowering the unbanked.
how can I sell pi coins after successfully completing KYCDOT TECH
Pi coins is not launched yet in any exchange 💱 this means it's not swappable, the current pi displaying on coin market cap is the iou version of pi. And you can learn all about that on my previous post.
RIGHT NOW THE ONLY WAY you can sell pi coins is through verified pi merchants. A pi merchant is someone who buys pi coins and resell them to exchanges and crypto whales. Looking forward to hold massive quantities of pi coins before the mainnet launch.
This is because pi network is not doing any pre-sale or ico offerings, the only way to get my coins is from buying from miners. So a merchant facilitates the transactions between the miners and these exchanges holding pi.
I and my friends has sold more than 6000 pi coins successfully with this method. I will be happy to share the contact of my personal pi merchant. The one i trade with, if you have your own merchant you can trade with them. For those who are new.
Message: @Pi_vendor_247 on telegram.
I wouldn't advise you selling all percentage of the pi coins. Leave at least a before so its a win win during open mainnet. Have a nice day pioneers ♥️
#kyc #mainnet #picoins #pi #sellpi #piwallet
#pinetwork
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how can i use my minded pi coins I need some funds.DOT TECH
If you are interested in selling your pi coins, i have a verified pi merchant, who buys pi coins and resell them to exchanges looking forward to hold till mainnet launch.
Because the core team has announced that pi network will not be doing any pre-sale. The only way exchanges like huobi, bitmart and hotbit can get pi is by buying from miners.
Now a merchant stands in between these exchanges and the miners. As a link to make transactions smooth. Because right now in the enclosed mainnet you can't sell pi coins your self. You need the help of a merchant,
i will leave the telegram contact of my personal pi merchant below. 👇 I and my friends has traded more than 3000pi coins with him successfully.
@Pi_vendor_247
Latino Buying Power - May 2024 Presentation for Latino CaucusDanay Escanaverino
Unlock the potential of Latino Buying Power with this in-depth SlideShare presentation. Explore how the Latino consumer market is transforming the American economy, driven by their significant buying power, entrepreneurial contributions, and growing influence across various sectors.
**Key Sections Covered:**
1. **Economic Impact:** Understand the profound economic impact of Latino consumers on the U.S. economy. Discover how their increasing purchasing power is fueling growth in key industries and contributing to national economic prosperity.
2. **Buying Power:** Dive into detailed analyses of Latino buying power, including its growth trends, key drivers, and projections for the future. Learn how this influential group’s spending habits are shaping market dynamics and creating opportunities for businesses.
3. **Entrepreneurial Contributions:** Explore the entrepreneurial spirit within the Latino community. Examine how Latino-owned businesses are thriving and contributing to job creation, innovation, and economic diversification.
4. **Workforce Statistics:** Gain insights into the role of Latino workers in the American labor market. Review statistics on employment rates, occupational distribution, and the economic contributions of Latino professionals across various industries.
5. **Media Consumption:** Understand the media consumption habits of Latino audiences. Discover their preferences for digital platforms, television, radio, and social media. Learn how these consumption patterns are influencing advertising strategies and media content.
6. **Education:** Examine the educational achievements and challenges within the Latino community. Review statistics on enrollment, graduation rates, and fields of study. Understand the implications of education on economic mobility and workforce readiness.
7. **Home Ownership:** Explore trends in Latino home ownership. Understand the factors driving home buying decisions, the challenges faced by Latino homeowners, and the impact of home ownership on community stability and economic growth.
This SlideShare provides valuable insights for marketers, business owners, policymakers, and anyone interested in the economic influence of the Latino community. By understanding the various facets of Latino buying power, you can effectively engage with this dynamic and growing market segment.
Equip yourself with the knowledge to leverage Latino buying power, tap into their entrepreneurial spirit, and connect with their unique cultural and consumer preferences. Drive your business success by embracing the economic potential of Latino consumers.
**Keywords:** Latino buying power, economic impact, entrepreneurial contributions, workforce statistics, media consumption, education, home ownership, Latino market, Hispanic buying power, Latino purchasing power.
Turin Startup Ecosystem 2024 - Ricerca sulle Startup e il Sistema dell'Innov...Quotidiano Piemontese
Turin Startup Ecosystem 2024
Una ricerca de il Club degli Investitori, in collaborazione con ToTeM Torino Tech Map e con il supporto della ESCP Business School e di Growth Capital
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
USDA Loans in California: A Comprehensive Overview.pptxmarketing367770
USDA Loans in California: A Comprehensive Overview
If you're dreaming of owning a home in California's rural or suburban areas, a USDA loan might be the perfect solution. The U.S. Department of Agriculture (USDA) offers these loans to help low-to-moderate-income individuals and families achieve homeownership.
Key Features of USDA Loans:
Zero Down Payment: USDA loans require no down payment, making homeownership more accessible.
Competitive Interest Rates: These loans often come with lower interest rates compared to conventional loans.
Flexible Credit Requirements: USDA loans have more lenient credit score requirements, helping those with less-than-perfect credit.
Guaranteed Loan Program: The USDA guarantees a portion of the loan, reducing risk for lenders and expanding borrowing options.
Eligibility Criteria:
Location: The property must be located in a USDA-designated rural or suburban area. Many areas in California qualify.
Income Limits: Applicants must meet income guidelines, which vary by region and household size.
Primary Residence: The home must be used as the borrower's primary residence.
Application Process:
Find a USDA-Approved Lender: Not all lenders offer USDA loans, so it's essential to choose one approved by the USDA.
Pre-Qualification: Determine your eligibility and the amount you can borrow.
Property Search: Look for properties in eligible rural or suburban areas.
Loan Application: Submit your application, including financial and personal information.
Processing and Approval: The lender and USDA will review your application. If approved, you can proceed to closing.
USDA loans are an excellent option for those looking to buy a home in California's rural and suburban areas. With no down payment and flexible requirements, these loans make homeownership more attainable for many families. Explore your eligibility today and take the first step toward owning your dream home.
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5. INTRODUCTION
• Finance is a broad term that describes two related activities-
Finance is defined as the management of money and includes activities
such as investing, borrowing, lending, budgeting, saving, and forecasting.
“Finance may be defined as the position of money at the time it is
wanted”…According to F.W. Paish
Dr. Shaifali Mathur
Money
Management
Process of
acquiring Fund
6. AREAS OF FINANCE
Public finance
deals with
the
transactions
relating to
public
expenditure,
revenue and
Deals with
procurement
and
management
of funds
needed for
business
activities.
Related to
capital
formation
and meets
the financial
requirements
of the
economy.
The study of
flows of
funds
between
individuals
and
organizations
across
It deals with
acquisition of
funds, its
utilization,
management
and control.
Dr. Shaifali Mathur
Institutional
Finance
8. OBJECTIVES OF FINANCIAL MANAGEMENT
• The Process of decision making by a finance manager must be goal oriented one. He must
have a specific goal in mind as he plans future course of action.
Dr. Shaifali Mathur
9. Dr. Shaifali Mathur
Profit Maximization
A business firm is profit-seeking organization.
Under this approach, actions that increases profits should be
undertaken and those that decreases profits should be avoided.
In specific operational terms, as applicable to financial management,
the profit maximization criterion implies that the investment, financing
and dividend policy decisions of a firm should be oriented to the
maximization of profits.
Earlier the only aim of sole proprietor then was to enhance his
individual wealth and personal power, which could easily be satisfied by
the profit maximization objective.
Profit maximization fails to serve as an operational criterion for
maximizing the owners’ economic welfare. It suffers from the following
limitations :
It is vague
It ignores timings
10. • Professor Ezra Soloman has suggested the adoption of wealth maximization as the best criterion
for the financial decision making. This objective is generally expressed in terms of maximisation of
the value of a share of a firm.
• Wealth maximisation means maximizing the ’net present value’(or wealth) of a course of action. A
financial action which has a positive net present value creates wealth and, and therefore, is
desirable. On the other hand, a financial action resulting in negative net present value should be
rejected. Between a number of desirable mutually exclusive projects the one with the highest net
present value should be adopted.
• The wealth maximisation criterion is based on the concept of cash flows generated by the decision
rather than accounting profit which is the basis of the measurement of benefits in case of the
profit maximisation criterion.
Benefits
Measuring benefits in terms of cash flows avoids the ambiguity associated with accounting profits.
It considers both the quantity and quality dimensions of benefits.
it also incorporates the time value of money.
It analyses risk and uncertainity Dr. Shaifali Mathur
Wealth Maximization
11. Dr. Shaifali Mathur
Goals Objectives Advantages Disadvantages
Profit
maximization
Large amount of
profits
1. Easy to
calculate
Profits.
2. Easy to
determine the
link between
financial
decisions and
profits
1.Emphasizes the
short term.
2. Ignores risk or
uncertainty
3. Ignores the
timing of returns
4. Requires
immediate
resources
Wealth
Maximization
Highest market
value of common
stocks
1. Emphasizes
the long term .
2. Recognizes
Risk and
Uncertainty
3. Recognizes
the timing of
returns.
4. Considers
return
1. Offer no clear
relationship
between
financial
decisions and
stock price.
2. Can lead to
management
anxiety and
frustration.
Comparison
12. Dr. Shaifali Mathur
Decision Areas of Financial Management
InvestmentDecisions
The investment decision is
relates to selection of
asset in which fund will be
invested by the firm.
@This include capital
budgeting decisions and
Working capital
management decisions.
@The decision relates to
the careful selection of
assets in which funds will
be invested by the firms.
The firm puts its funds in
procuring fixed assets and
FinancingDecision
A firm’s capital structure or
financing decision is
concerned with obtaining
funds to meet firm’s long
term investment
requirements through
specific mixture of long-
term debt and equity.
Under this function the
Finance Manager is to
involve the following
decisions:
@Capitalization Decision
@ Cost of Capital
Dividend
@Dividend decisions
deals with
appropriations of after
tax profits.
The finance manager
has to decide whether
the firm should
distribute all profits or
retain them, or
distribute a portion and
retain the balance.
The decision regarding
the amount of profits to
13. Dr. Shaifali Mathur
Questions
1. Financial Management is mainly concern with-----------------.
a) All aspects of acquiring and utilizing financial resources for firms activities.
b) Arrangement of Funds
c) Efficient management of every business
d) Profit maximization
Answer
2. The primary goal of Financial management is----------------------.
a) To maximize the return
b) To maximize risk
c) To maximize the wealth of the owners
d) To maximize profits
Answer
3. Corporate restructuring decisions of financial management are related with which of the
following ?
a) Investment decisions
b) Financing decisions
c) Dividend decisions
d) All of the above
Answer
14. Dr. Shaifali Mathur
Scope/Functions of Financial Management
Functions
Primary
Financial
Planning
Financial
Control
Allocation of
Funds
Acquisitio
n of Funds
Distribution
of Funds
Subsidiary
Liquidity
Profitabilit
y
Evaluation of
Financial
Performance
Co-ordination
with other
Departments
Incidental/
Routine
Clerical or
routine
nature
required for
the
execution of
decision
taking by the
executives
15. Dr. Shaifali Mathur
Formulation of organizational objectivesFinancial Planning
• Formulation of financial policies
• Making adjustments and readjustments- preplanning for removing defects and ineffectiveness
Financial progress is evaluated from time to time and corrective measures
are taken in case of deviations. Steps involves areFinancial Control
• I Developing standard of performance.
• II Comparing actual performance with these standards.
Ensure adequate supply of funds from the right source at the cost and right
time to meet firm’s funding needs.Acquisition of Funds
•The funds can be raise from various sources such as equity shares ,preference shares , loans,etc.
•Sources of funds depends upon -
•@Cost of capital
•@Nature of cost (fixed/variable )
•@Duration of funds
Effective distribution of acquired fundsAllocation of Funds
•Involve investments in current assets /short term asset.
•Consequences insufficient allocation should be considered.
Distribution of net profit after tax among shareholders.Distribution of Funds
•Involve dividend decisions.
Primary Functions
16. Dr. Shaifali Mathur
Liquidity
Subsidiary Functions
Enable the firm in paying its
obligations in time and
meeting day to day needs.
Profitability
function
Finance manager tries to
maximize the profits of the
firm so that value of the firm
may increase
Evaluation of
Financial
performance
Coordination
with other
Departments
Evaluation of financial
performance of the firm to
facilitate changes to be
made in future policies
and plans by pointing out
the errors committed.
Success of a firm
depends on the
coordination with other
departments .
There should be
uniformity in decisions
taken by the different
departments
17. Dr. Shaifali Mathur
Proper custody
and safeguard
of valuable
papers
Incidental
and routine
functions
Supervision
of Cash
receipts and
payments
Maintenance of
accounts and
preparation of
reports
Administrati
on of
Internal
Audit
Establishing
financial public
relations
Compliance
with
government
regulaions
The chief Financial executive /controller is
mainly responsible for taking decisions
regarding execution/ administrative finance
functions
18. Dr. Shaifali Mathur
Significance of Financial
Management
Determinant of
Business success
Optimal utilization
of Resources
Measurement of
performance
Basis of Planning,
coordination and
control
Focal point of
decision making
Limitations of Financial
Management
Based on
Accounting records
Lack of knowledge
of related subjects
Lack of Objectivity
Expensive or
Uneconomical
Evolutionary stage
More and more businesses are reducing management jobs and squeezing together the various layers of the corporate pyramid. This is being done to reduce costs and boost productivity. As a result, the responsibilities of the remaining management positions are being broadened.
Developing cross-functional capabilities will be the rule, not the exception. Thus, a mastery of basic financial management skills is key ingredient that will be required in the work place of your not too distant future.
3. Almost every firm, government agency, and organization has one or more financial managers who oversee the preparation of financial reports, direct investment activities, and implement cash management strategies. As computers are increasingly used to record and organize data, many financial managers are spending more time developing strategies and implementing the long-term goals of their organization.
4. The duties of financial managers vary with their specific titles, which include controller, treasurer or finance officer, credit manager, cash manager, and risk and insurance manager. Controllers direct the preparation of financial reports that summarize and forecast the organization’s financial position, such as income statements, balance sheets, and analyses of future earnings or expenses.
5. Regulatory authorities also in charge of preparing special reports require controllers. Often, controllers oversee the accounting, audit, and budget departments. Treasurers and finance officers direct the organization’s financial goals, objectives, and budgets. They oversee the investment of funds and manage associated risks, supervise cash management activities, execute capital-raising strategies to support a firm’s expansion, and deal with mergers and acquisitions.
6
. Credit managers oversee the firm’s issuance of credit. They establish credit-rating criteria, determine credit ceilings, and monitor the collections of past-due accounts. Managers specializing in international finance develop financial and accounting systems for the banking transactions of multinational organizations.
7. Cash managers monitor and control the flow of cash receipts and disbursements to meet the business and investment needs of the firm.
8. Financial institutions, such as commercial banks, savings and loan associations, credit unions, and mortgage and finance companies, employ additional financial managers who oversee various functions, such as lending, trusts, mortgages, and investments, or programs, including sales, operations, or electronic financial services.
9. Branch managers of financial institutions administer and manage all of the functions of a branch office, which may include hiring personnel, approving loans and lines of credit, establishing a rapport with the community to attract business, and assisting customers with account problems. Financial managers who work for financial institutions must keep abreast of the rapidly growing array of financial services and products.
Study of how money is managed how money is managed and the process of acquiring funds.
Finance not only includes the act of making money available, but also includes its administration and control of money ( how well are we managing the funds.).
It is vague : It does not clarify what exactly does it mean. For example, which profits are to be maximised, short-term or long-run, rate of profit or the amount of profit ?
It ignores timings : The concept of profit maximisation does not help in making a choice between projects giving different benefits spread over a period of time. The fact that a rupee received today is more valuable than a rupee received later, is ignored.
It ignores risk : The streams of benefits may posses different degree of certainty. Two firms may have same total expected earnings, but if the earnings of one firm fluctuate considerably as compared to other, it will be more risky. Possibly owners of the firm would prefer smaller but certain profits to a potentially large but less certain stream of benefits.
It ignores interest of workers, consumers, government and public in general.
The assets which can be acquired fall into two broad groups : (i) long term assets which yield a return over a period of time in future, (ii) short-term or current assets defined as those assets which in normal course of business are convertible into cash usually within a year.
Financing decisions
Capitalization- finance manager has to decide the funds requirements for fixed assets and WC purposes and also to identify different sources available to raise such funds.
COC: Finance manger has to assess individual cost .
Capital structure: depending upon advantages and disadvantages of debt component, the finance manager s/d determinethe degree pr level of gearing i.e. adding debt into the capital structure.