Topics
Nature and Significance of Management
- Case Study: Tata Group – Excellence in Management
- Concept of Management
- Characteristics of Management
- Objectives of Management
- Importance of Management
- Nature of Management
- Management as an Art
- Management as a Science
- Management as a Profession
- Levels of Management
- Functions of Management
- Coordination as an Essence of Management
- Management in the Twenty-First Century
Principles and Functions of Management
Business Finance and Marketing
Principles of Management
- Case Study: Toyota's Guiding Principles of Management
- Evolution of Management Principles
- Concept of Management Principles
- Nature of Management Principles
- Significance of Management Principles
- Taylor's Scientific Management Theory
- Principles of Scientific Management
- Techniques of Scientific Management> Functional Foremanship
- Techniques of Scientific Management> Standardisation and Simplification of Work
- Techniques of Scientific Management> Differential Piece Wage System
- Fayol’s Principles of Management
- Comparison of Taylor's and Fayol’s Principles.
Business Environment
- Case Study: Dharamveer Kamboj's Entrepreneurial Journey
- Concept of Business Environment
- Importance of Business Environment
- Dimensions of Business Environment
- External Factors> Economic Environment
- External Factors> Social Environment
- External Factors> Technological Environment
- External Factors> Political Environment
- External Factors> Legal Environment
- Economic Environment in India
- The 1991 Economic Crisis and Reforms
- Liberalisation
- Privatisation
- Globalisation
- Demonetisation
Planning
Organising
- Case Study: Wipro's Organisational Restructuring for Growth
- Organising
- Steps in the Process of Organising
- Importance of Organising
- Structure of Organisation
- Types of Organisation Structure > Functional Structure
- Types of Organisation Structure > Divisional Structure
- Comparison Between Functional Structure and Divisional Structure
- Formal Organisation
- Informal Organisation
- Comparison between Formal Organisation and Informal Organisation
- Concept of Delegation of Authority
- Concept of Decentralization
- Comparison Between Delegation and Decentralization
Staffing
- Case Study: Management of Human Resources at Infosys
- Staffing
- Staffing as Part of Human Resource Management
- Evolution of Human Resource Management
- Staffing Process
- Aspects of Staffing > Recruitment
- Sources of Recruitment
- Internal Sources
- External Sources
- Aspects of Staffing > Selection
- Aspects of Staffing > Training and Development
- Methods of Training
Directing
- Case Study: Leadership Development at Ford Motor Company
- Directing
- Principles of Directing
- Elements of Directing
- Supervision
- Motivation
- Motivation> Motivation Process
- Motivation> Importance of Motivation
- Motivation > Maslow’s Need Hierarchy Theory of Motivation
- Motivation> Financial and Non-Financial Incentives
- Leadership
- Communication
- Communication> Formal Communication
- Communication> Informal Communication or Grapevine
- Barriers to Communication
- Improving Communication Effectiveness
Controlling
Financial Management
- Case Study: Tata Steel–Corus Acquisition
- Concept of Business Finance
- Concept of Financial Management
- Financial Decisions> Investment Decision
- Financial Decisions> Financing Decision
- Financial Decisions> Dividend Decision
- Concept of Financial Planning
- Importance of Financial Planning
- Capital Structure
- Factors affecting the Choice of Capital Structure
- Fixed Capital
- Working Capital
Financial Markets
- Concept of Financial Market
- Money Market
- Capital Market
- Primary Market
- Secondary Market/Stock Exchange
- Distinction Between Capital Market and Money Market
- Distinction between Primary and Secondary Market
- Functions of Stock Exchange
- Trading Procedure of Stock Exchange
- Depository Services
- Demat System
- Securities and Exchange Board of India (SEBI)
Marketing Management
- Concept of Marketing
- Concept of Marketing Management
- Marketing vs. Selling
- Marketing Management Philosophies
- Functions of Marketing
- Concept of Marketing Mix
- Marketing Mix> Product
- Classification of Products> Consumer Products
- Classification of Products> Industrial Products
- Branding
- Packaging
- Labelling
- Marketing Mix> Pricing
- Marketing Mix> Physical Distribution
- Marketing Mix> Promotion
- Promotion Mix
- Advertising
- Personal Selling
- Sales Promotion
- Public Relations
- Distinction Between Advertising and Personal Selling
Marketing
- Concept of Financial Market
- Types of Financial Market
- Money Market
- Capital Market
- Primary Market
- Secondary Market/Stock Exchange
- Securities and Exchange Board of India (SEBI)
- Distinction Between Capital Market and Money Market
- National Stock Exchange of India (NSE)
- Overview of Marketing
Consumer Protection
- Case Study: Consumer Protection in Banking Services
- Concept of Consumer Protection
- Importance of Consumer Protection
- Consumer Protection Act, 2019
- Concept of Consumer
- Consumer Rights
- Responsibilities of Consumers
- Ways and Means of Consumer Protection
- Redressal Agencies Under The Consumer Protection Act
- Role of Consumer Organisations and NGO's
- Overview of Consumer Protection
Estimated time: 12 minutes
CBSE: Class 12
Financial Management: Core Decisions
Financial management addresses three core issues:
- Investment Decision – where to invest funds
- Financing Decision – how to raise funds
- Dividend Decision – how to distribute profits
Finance involves choosing the best financing or investment alternative
CBSE: Class 12
Investment Decision
- Firms must choose where to invest scarce funds to earn the highest return.
- Investment decision = allocation of funds to different assets.
- Divided into two types: Long-term and Short-term.
| Type | Also Called | Examples | Key Focus |
|---|---|---|---|
| Long-term Investment Decision | Capital Budgeting | Buying new machines, new fixed assets, opening new branches | Profitability, size of assets, competitiveness |
| Short-term Investment Decision | Working Capital Decision | Cash, inventory, receivables management | Liquidity and profitability |
CBSE: Class 12
Capital Budgeting
- Decisions are irreversible in nature.
- Impact the size of assets, profitability, and competitiveness of the firm.
- Require careful evaluation before committing funds.
CBSE: Class 12
Factors Affecting Capital Budgeting Decision
- Cash flows of the project – Careful analysis of the expected series of cash receipts and payments over the project life.
- Rate of return – Projects are compared on expected return and risk; higher-return project is preferred when risk is the same (e.g., Project B at 12% is preferred over Project A at 10%).
- Investment criteria involved – Proposals must be evaluated using capital budgeting techniques involving investment amount, interest rate, cash flows, and rate of return.
CBSE: Class 12
Working Capital Decision
- Decisions involve management of cash, inventory, and receivables.
- Affects both liquidity and profitability of the firm.
- Efficient management of cash, inventory, and receivables is key to sound working capital management.
CBSE: Class 12
Key Points: Investment Decision
- Financial management involves three decisions: investment, financing, and dividend.
- Investment decision = allocating scarce funds to assets to earn the highest return.
- Long-term investment decisions are called capital budgeting; they are irreversible and affect profitability and competitiveness.
- Short-term investment decisions are called working capital decisions; they involve cash, inventory, and receivables.
- Three key factors affecting capital budgeting: cash flows of the project, rate of return, and investment criteria.
- When risk is equal, the project with the higher rate of return is preferred.
- Sound working capital management requires efficient handling of cash, inventory, and receivables.
Related QuestionsVIEW ALL [7]
| Myra Ltd. manufacturing televisions is planning to expand its business and requires ₹250 crores for the same. A number of projects are available for the company to invest in and each project has to be evaluated carefully. The Finance Manager of the company has assessed the projects in terms of the rate of return from each project and wanted to select the one with the higher rate of return. But before selecting the project he has to take into consideration other factors also. |
- Identify and state the financial decision discussed in the above paragraph.
- Explain the other factors that the Finance Manager should consider before selecting the project.
