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प्रश्न
Name & state the aspect of financial management that provides a link between investment and financing decisions.
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उत्तर
The aspect of financial management that provides a link between investment and financing decision is referred as “Financial planning”. Financial planning aims to determine the decisive choices of an organisation regarding its investment avenues and also, the fund raising options.
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संबंधित प्रश्न
Ramnath Ltd. is dealing in import of organic food items in bulk. The company sells the items in smaller quantities in attractive packages. Performance of the company has been up to the expectations in the past. Keeping up with the latest packaging technology, the company decided to upgrade its machinery. For this, the Finance Manager of the company, Mr Vikrant Dhull, estimated the amount of funds required and the timings. This will help the company in linking the investment and the financing decisions on a continuous basis. Therefore, Mr Vikrant Dhull began with the preparation of a sales forecast for the next four years. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources.
For the remaining funds, he is trying to find out alternative sources. Identify the financial concept discussed in the above paragraph. Also, State any two Points of the importance of the financial concept, so identified.
Explain the twin objectives of financial planning.
Aval Ltd. is engaged in the business of export of canvas goods and bags. In the past, the performance of the company had been upto the expectations. In line with the latest demand in the market, the company decided to venture into leather goods for which it required specialised machinery. For this, the Finance Manager Prabhu prepared a financial blueprint of the organisation’s future operations to estimate the amount of funds required and the timings with the objective to ensure that enough funds are available at right time. He also collected the relevant data about the profit estimates in the coming years. By doing this, he wanted to be sure about the availability of funds from the internal sources of the business. For the remaining funds, he is trying to find out alternative sources from outside.
a. Identify the financial concept discussed in the above paragraph. Also, state the objectives to be achieved by the use of financial concept so identified. ( Financial Planning).
b. ‘There is no restriction on payment of dividend by a company’. Comment. ( Legal & Contractual Constraints)
Financial planning arrives at :
Financial planning usually begins with the preparation of a ______ .
______ takes into consideration the growth, performance, investments and requirement of funds for a given period
Detailed plans of action are prepared under financial planning. What benefits does this result in?
| Harish is working as a finance manager in 'Kozee Softwares Ltd.' He has been awarded “Best employee of the year Award’ because of his foresightedness. He always aims at smooth operations of all the financial activities by focusing on fund requirements and their availability in the light of financial decisions. He takes into consideration the growth, performance, investments and requirement of funds for a given period so that financial resources are not left idle and don't unnecessarily add to the cost. |
By doing all this Harish strives to achieve the two main objectives of an important concept of financial management. Identify the concept and explain its two objectives.
What does financial planning ensure about the availability of funds?
What is the focus of financial planning?
What does financial management choose to increase shareholders’ wealth?
What is the usual period for financial planning?
What are plans up to one year called?
What is the starting point in the basic steps of financial planning?
Which capital needs are considered when preparing financial statements?
After estimating profits and retained earnings, what funding decisions are made?
Which budgets are made as part of the basic steps of financial planning?
What can happen when a business has too much debt?
