discuss briefly different functional areas of financial management
Answers
Determining Financial Needs:
A finance manager is supposed to meet financial needs of the enterprise. For this purpose, he should determine financial needs of the concern. Funds are needed to meet promotional expenses, fixed and working capital needs. The requirement of fixed assets is related to the type of industry. A manufacturing concern will require more investments in fixed assets than a trading concern. The working capital needs depend upon the scale of operations, larger the scale of operations, the higher will be the needs for working capital.
As we know that financial management is very important in our lives hence there are some key areas which we need to keep in mind when dealing with financial management. First is determining the needs, selecting the sources of procurement of funds, analyzing and interpreting which source is better, profit analysis, calculating capital budgeting, working capital management, and deciding on the dividend policy.