Advertisements
Advertisements
प्रश्न
What is meant by Financial Risk?
Advertisements
उत्तर
Financial risk refers to the risk that borrowed funds would not be repaid. In other words, it implies the risk that the company would not be able to meet its fixed financial obligations such as interest payment, preference dividend and other repayment obligations.
APPEARS IN
संबंधित प्रश्न
Name and state the aspect of financial management that enables to foresee the fund requirements both in terms of 'the quantum' and 'the timings'.
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 usually begins with the preparation of a ______ .
Mr. Raghav, Finance manager of Manav InfraTech Pvt. Ltd., prepared a detailed plan of financial needs of the firm in coming six months and the sources from where funds will be acquired to meet out these needs as company is planning to open a new branch in other states of India. Identify the financial concept discussed here:
Assertion (1): Financial planning tries to link the present with the future.
Reason (R): Financial planning is essentially the preparation of a financial blueprint of an organisation's future operations.
What is the focus of financial planning?
What does financial management choose to increase shareholders’ wealth?
What is the starting point in the basic steps of financial planning?
Which capital needs are considered when preparing financial statements?
Which estimates come before determining the external fund requirement and sources?
Which budgets are made as part of the basic steps of financial planning?
How does higher industry volatility affect the amount of debt a business should carry?
How does lower industry volatility affect the amount of debt a business may carry?
What do banks check when considering debt?
What should business owners use before borrowing to make sound borrowing decisions?
