Question

Discuss briefly different functional areas of financial management

Answer 1

Some of the functional areas covered in financial management are discussed as such:


-Determining Financial Needs
-Selecting the Sources of Funds
-Financial Analysis and Interpretation
-Cost-Volume-Profit Analysis
-Capital Budgeting
-Working Capital control
-Profit Planning and control
-Dividend Policy

Answer 2

Answer:

The field of the financial management focuses on the ratio, equities and the debits, along with the distribution of the currencies and the stocks. The managers do a research based funds in order to maximize the  value of the returns.

Explanation:

Functional aspects of the financial management are:

1. Estimation of the capital requirements i.e to make an estimate with regards to the capital of the company.

2. Determination of the capital compositions. This depends on the proportion of the equity capital, the company is proposing.

3. Choice of the source of funds. Issue of shares and debentures, loan to be taken, public deposits.

4. Investment of funds. Allocation funds into a profitable venture.

5. Disposal of surplus. By the dividend declaration, retained profits.

6. Management of cash. Cash has to be managed for various purposes like bill payment and the maintenance of the stocks.

7. Financial controls. Here the manager has the use of financial ratios, financial forecasting, and profit analysis.