Finance is the lifeblood of all economic activity and it is a fact that
financial system is a major element of any economy.
It performs the essential function of channeling funds from people who have saved funds by spending less than their income to those people who have a shortage of funds since their plans to spend exceed their income.
A business must ensure that the funds are available from the right sources at the right cost at the right time and also the ways of raising funds, whether it is to be through the process of securities or lending from the bank.
The funds that are acquired have to be allocated accordingly to various projects and services and the objective of the business is to earn profits which are determined by how effectively and efficiently allocated funds are utilized.
When it comes to capital utilization, it has to be done with proper investment decisions, proper control and asset management policies and efficient management of funds and working capital.
The aim of any business is to maximize profits and create wealth for the investors, which is measured by the price of the shares of the organization.
The price of the share of any company is known by its present and expected future earnings and enables the defining of policies and ways to maximize the earnings.
Profit making and financial success for the owners is the financial objective of the firm and the role of finance is to ensure adequate and regular supply of funds to the business and provide a fair rate of return to the suppliers of capital.
Finance makes possible the efficient utilization of capital and available resources according to the principles of profitability and productivity.
It provides a system for internal investment, financing and internal controls and attempts to minimize cost of capital by making a sound and economical mix of corporate securities.
Finance also gives a wider perspective of managing the business generated assets and other valuables more efficiently.
It performs the essential function of channeling funds from people who have saved funds by spending less than their income to those people who have a shortage of funds since their plans to spend exceed their income.
A business must ensure that the funds are available from the right sources at the right cost at the right time and also the ways of raising funds, whether it is to be through the process of securities or lending from the bank.
The funds that are acquired have to be allocated accordingly to various projects and services and the objective of the business is to earn profits which are determined by how effectively and efficiently allocated funds are utilized.
When it comes to capital utilization, it has to be done with proper investment decisions, proper control and asset management policies and efficient management of funds and working capital.
The aim of any business is to maximize profits and create wealth for the investors, which is measured by the price of the shares of the organization.
The price of the share of any company is known by its present and expected future earnings and enables the defining of policies and ways to maximize the earnings.
Profit making and financial success for the owners is the financial objective of the firm and the role of finance is to ensure adequate and regular supply of funds to the business and provide a fair rate of return to the suppliers of capital.
Finance makes possible the efficient utilization of capital and available resources according to the principles of profitability and productivity.
It provides a system for internal investment, financing and internal controls and attempts to minimize cost of capital by making a sound and economical mix of corporate securities.
Finance also gives a wider perspective of managing the business generated assets and other valuables more efficiently.
No comments:
Post a Comment