To avoid the problem of shortage and surplus of funds what is required in financial management
Answers
Answer:
to avoid the problem of shortage and surplus of funds financial planning is required in financial management. financial planning involves designing the blueprint of the financial operation of a firm
Answer:
To avoid the problem of shortage and surplus of funds what is required in financial management. It is itself a vast aspect of an economy that includes the sub-topics like cost, price, expenditures, assets, and liabilities of the firm.
To manage a firm's financial resources needs a professional set of skills for its better distribution and utilization.
Hence, There are many shortcoming and limitations comes across the management sector -
Proper Allocation - The firm should prioritize the financial requirements of the different sectors like production, advertisement, distribution and channelizing, packaging, etc. this is the important step to think about where to "Invest First and How Much".
The Source Of Acquisition Of Funds - Every firm or business comes across the point where there acquire the funds outside the firm in the form of Shares, Debentures, Bonds, Capital Market, etc. the decision of acquisition depends on the nature of the business and its scales too. this decision the financial condition in the upcoming year of the business returns.
Surplus Funds are that extra business incurs with the sale of every single extra unites under the single accounting year. This money divided into several parts starting from white-collar to the saving percentages to capital to meet firms' upcoming expenditure.
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