What is Business Finance? Who is responsible to manage the finance within a business firm?

-

 Business Finance refers to money and credit employed in business. Business Finance involves in utilization of fund i.e, purchasing fixed assets , current assets etc which helps to run smoothly and efficiently. It is needed in all types of organization large or small. In the broader context of business finance is about strategies for earning , saving and investing revenue.

                                                                                                     Business Finance is the money you need to establish  the business . Business finance includes the information of financial statement i.e, balance sheet, cash flow statement etc.

                                                Financial manager is responsible to manage the finance within a business firm because they produce or prepare financial report and develop strategies and plans for long term financial goals of their organization. Financial managers act as a business advisior to top executives. Financial Managers are responsible to manage the finance of business firm due to these responsibilities of financial managers which are written below.

a. Estimating business requirement fund

b. Investing Decision

c. Tax Management

d. Cash Management

e. Analysis of Risk

f. Make dividend pay out decision etc. Financial Managers are essential for the Organization.

 

 

 

 

 

 

 

 

 

Location: Nepal

Comments

Post a Comment

Popular posts from this blog

Cultural Heritage of Nepal

-
Image
  Heritage by definition is a tradition that inherits from one generation to another generation. Nepal has own self cultural heritage. All the cultural heritage made by man. All the culture activities are included in culture heritage like generation or clan, fact of art or craft, goods, activities of technique views, exercises or values, Temples, monuments, monasteries, forts, sculptures image or pictures, manuscript colophon, inscription, manner, customs, rituals, lifestyle, living style, music, dance, dress and ornaments, food and drinks, behavior or habit, communication, language, religion, belief, fest and festivals, structure of villages, historical places, the ruin structure, local tradition, castes, etc. Here are a lot of culture heritages in Nepal like palaces in the capital of Nepal, Gumbas of Himalayan region , Sworgadwori of pyuthan, Halasi Mahadev of Dharan, Dudhkunda and Gosaikunda of Rasuwa , Manakemana of Gorkha , Tal Barahai and Bindabasani of Pokhara, Lumbini the birth
Read more

Why are you intrested in cash flows rather than accounting profit in determining the value of the an assets?

-
 Cash Flow is the inflow and outflow of money. It is necessary for daily operations, taxes, purchasing inventory and paying employees and operating costs. Profit means the surplus after expenses are deducted from revenue. Profit is the overall picture of a business and the basis on which tax is deducted.                           We are intrested in cash flows rather than accounting profit in determining the value of the an assets because of mentioned reason. 1. The appropriate objective of a firm is not to maximize profits, rather it is to maximize the shareholder's wealth which depends upon present value of cash flow available to them and not accounting profit.  2. Cash flows recognizes the time value of money by considering the actual cash inflows and outflows . On the other hand, accounting periods consider revenues which earned and expenses when incurred on the accural basis rather than which cash is actually effected. 3. The third reason for considering cash flows to be a bet
Read more