求金融英语及其相关文章

financial management
management of funds ** a critical aspect of financial management.management of funds act as the foremost concern whether it ** in a business undertaking or in an educational institution.financial management,which ** simply meant dealing with management of money matters.
meaning of financial management
by financial management we mean efficient use of economic resources namely capital funds.financial management ** concerned with the managerial dec**ions that result in the acqu**ition and financing of short term and long term credits for the firm.here it deals with the situations that require selection of specific assets,or a combination of assets and the selection of specific problem of size and growth of an enterpr**e.herein the analys** deals with the expected inflows and outflows of funds and their effect on managerial objectives.in short,financial management deals with procurement of funds and their effective utilization in the business.
so the analys** simply states two main aspects of financial management like procurement of funds and an effective use of funds to achieve business objectives.
procurement of funds:
as funds can be procured from multiple sources so procurement of funds ** considered an important problem of business concerns.funds obtained from different sources h**e different character**tics in terms of potential r**k,cost and control.
funds **sued by the **sue of equity shares are the best from r**k point of view for the company as there ** noquestion of repayment of equity capital except when the company ** liquidated.
from the cost point of view equity capital ** the most expensive source of funds as dividend expectations of shareholders are normally higher than that of prevailing interest rates.
financial management constitutes r**k,cost and control.the cost of funds should be at minimum for a proper balancing of r**k and control.
in the global**ed competitive scenario,mobilization of funds plays a very significant role.funds can be ra**ed either through the domestic market or from abroad.foreign direct investment(fdi)as well as foreign institutional investors(fii)are two major sources of ra**ing funds.the mechani** of procurement of funds has to be modified in the light of requirements of foreign investors.
utilization of funds:
effective utilization of funds as an important aspect of financial management **oids the situations where funds are either kept idle or proper uses are not being made.funds procured involve a certain cost and r**k.if the funds are not used properly then running business will be too difficult.in case of dividend dec**ions we also consider th**.so it ** crucial to employ the funds properly and profitably.
scope of financial management
sound financial management ** essential in all types of organizations whether it be profit or non-profit.financial management ** essential in a planned economy as well as in a capital**t set-up as it involves efficient use of the resources.
from time to time it ** observed that many firms h**e been liquidated not because their technology was obsolete or because their products were not in demand or their labour was not skilled and motivated,but that there was a mi**anagement of financial affairs.even in a boom period,when a company make high profits there ** also a fear of liquidation because of bad financial management.
financial management optimizes the output from the given input of funds.in a country like india where resources are scarce and the demand for funds are many,the need of proper financial management ** required.in case of newly started companies with a high growth rate it ** important to h**e sound financial management since finance alone guarantees their survival.
financial management ** very important in case of non-profit organizations,which do not pay adequate attentions to financial management.
how ever a sound system of financial management has to be cultivated among bureaucrats,admin**trators,engineers,educational**ts and public at a large.
objectives of financial management
efficient financial management requires the ex**tence of some objectives,which are as follows
1)profit maximization:
the objective of financial management ** the same as the objective of a company which ** to earn profit.but profit maximization alone cannot be the sole objective of a company.it ** a limited objective.if profits are given undue importance then problems may ar**e as d**cussed below.
the term profit ** vague and it involves much contradictions.
profit maximization must be attempted with a realization of r**ks involved.a positive relationship ex**ts between r**k and profits.so both r**k and profit objectives should be balanced.
profit maximization fails to take into account the time pattern of returns.
profit maximization does not take into account the social considerations.
2)wealth maximization:
it ** commonly understood that the objective of a firm ** to maximize value and wealth.
the value of a firm ** represented by the market price of the company's stock.the market price of a firm's stock represents the asse**ent of all market participants as to what the value of the particular firm **.it takes in to account present and prospective future earnings per share,the timing and r**k of these earning,the dividend policy of the firm and many other factors that bear upon the market price of the stock.market price acts as the performance index or report card of the firm's progress and potential.
prices in the share markets are affected by many factors like general economic outlook,outlook of the particular company,technical factors and even mass psychology.normally th** value ** a function of two factors:
the anticipated rate of earnings per share of the company
the capitalization rate.
the likely rate of earnings per shares depend upon the asses**ent of how profitable a company may be in the future.
the capitalization rate reflects the liking of the investors for the company.
methods of financial management:
in the field of financing there are multiple methods to procure funds.funds may be obtained from long term sources as well as from short term sources.long term funds may be procured by owners that are shareholders,lenders by **suing debentures,from financial institutions,banks and the general public at large.short term funds may be **ailed from commercial banks,public deposits,etc.financial leverage or trading on equity ** an important method by which a finance manager may increase the return to common shareholders.
at the time of evaluating capital expenditure projects methods like **erage rate of return,pay back,internal rate of returns,net present value and profitability index are used. a firm can increase its profitability without adversely affecting its liquidity by an efficient utilization of the current resources at the d**posal of the firm. a firm can increase its profitability without negatively affecting its liquidity by efficient management of wo**ng capital.
similarly,for the evaluation of a firm's performance there are different methods.ratio analys** ** a common technique to evaluate different aspects of a firm.an investor takes in to account various ratios to know whether investment in a particular company will be profitable or not.these ratios enable him to judge the profitability,solvency,liquidity and growth aspect of the firm.