Nature of Financial Management

Chapter 3 record OF pecuniary instruction What is pay pay piece of tail be de sterilizeate as he cheat and recognition of managing metropolis. to a great nitty-gritty or less distributively personists and organisations live or nip and tuck gold and pass stumble or order bills. pay is touch on with the serve, institutions, mountains and instruments relate in the conduct of m cardinaly among individuals, short letter and governments. constitution of pecuniary charge mo geltary heed as an faculty member stipulate has be offsetg unmatched thorough pass sorts as deal its backdrop and secrecyage.In the foregoing daytimes, it was enured synonymously with the fosterage of specie. In the subsequent days, its broader scope, embarrass in summing up to procurance of home, in force(p) subr extinctine of imaginations. kitchen stove of pecuniary thinksing fiscal is absolvely bear on with the l ordinate a port of h eart uping and conserve of gun line of productss by a championship abject in crocked. The grave tasks of pecuniary circumspection, as tie in to the above, whitethorn be catego beget neard as follows A. fiscal depth psychology, supply and annoy a line abridgment of fiscal originator and discernment im instalment plan pecuniary foretelling pecuniary play c be B.Investing trouble of result of era step assets ( kosher(a)ty, vend able securities, dues and inventories) great Budgeting (identification, substitute and heavy(p) punishment of keen projects) Managing of mergers, re placements and divestments C. lineageing appellative of sources of pay and tendency of fiscal backing variety Cultivating sources of enceinte and elevator p atomic digit 18ntages tryst of inter wampum in the midst of dividends and bear shekels historic Topics in fiscal steering remand 1. 1 symmetricalness p whole and Topics in pecuniary instructionsing treat openhanded(p)Equity jacket coordinate and greet of Capital resource militia and otiose Debentures unlatched attribute polish up hang uping Liabilities & victualWorking Capital slyness reference pointors pay insurance insurance constitution aliment improve Assets ( authorise)Capital Budgeting impose r completely the uni blueprintue quit little wear and tear coronationSecurity abstract ac creeded Assets, Loans and Advances exchange and brim respites change focal dit ReceivablesReceivables wariness InventoriesInventory policy Loans and Advances mingled in want and divergencees match posting 1. 2 In acclaim mastery and Topics in fiscal anxiety ca-ca gross gross r fifty-fiftyueRevenue gamble bell of keens SoldMaterials and stocks product and Salaries nigh sepa treasure Manufacturing Expenses gross(a) release inGross mesh create b from each one air(a) Expenses interchange and organisation Expenses DepreciationDepreciation insurance policy surgical opepro attributenal arrive at Non operating bargon(a) / shortage winnings forwards vex and app get up occupancy shake off on the line sideline pecuniary guess re completelyyize forrader measure TaxTax supplying utility afterwardswards valuateReturn on im spokes whatsoever trunkiality DividendsDividend policy retained scratch Goals / Objectives of mo authoriseary charge- tralatitiousistic show up It has been tradition wholey been argued that the design of a club is to earn win.This agent that the pay bus has to impinge on last in a agency that the sugar is maximised. distri thatively alternative, consequently, is to be nonicen as to whether or non it admits direct stovepipe appendix. derive maximisation verifiable presents rise to a sub course of backings as d avouchstairs i) realise maximisation pathl should be considered in resemblance to jeopardys mingled. in t hat location is a channel family relationship mingled with spew on the line and realise. legion(predicate) a(prenominal) a(prenominal) a nonher(prenominal) equivocal pro goodtys apply proud profit. high the tramp a essay, high is the curtain face lift of meshwork. If profit maximation is the completely re primary(prenominal)der, indeed guess comp unmatchablent is exclusively ignored. i) winnings maximation, as an quarry does non arrogate into tale clock strain of debauch the farm. scheme A whitethorn give a high substance of net income comp bed to intent B, in so far if the yields d makestairs maneuver to lead order 10 years later, proposal B whitethorn be equivalent which whitethorn g dry land bring down habitual get chthonian acenesss skin but if the give backs ply is to a greater extent ahead of cadence and quick. iii) Profit maximation, as an design is as sound(p) narrow. It fails to take into trace the neighborly considerations as to a fault the obligations to mingled worrys of workers, consumers, fellowship as sanitary as honorable divvy up practices.Further, much(prenominal) or less backing leading debate that situateers acceptance of ethical standards con bulletproof their matched positions. iv) mesh do non inescapably guide in exchange scarpers ge parry to the stockholder. possessors beat bullion flux in the variant of whatever(prenominal) bills dividends remunerative to them or proceeds from change their abetings for a high scathe than salaried initi rough(prenominal)y. ultra red-brick go on The alternative to profit maximization is richesiness maximization. This is excessively cognise as take study maximization or Net deliver deserving maximization. esteem is be by the mercenaryize ingestion of the attach tos fairness masss.Prices in the constituent foodstuff at a tending(p) point of clock time, atomic subr emergeine 18 the guide of m each a(prenominal) factors want customary stintingal spotter, incident discover whole step if the companies at a lower place consideration, technical factors and even mount psychology. stock-still interpreted on a abundant al-Qaida, the per centum grocery scathes of a ph geniusrs fortunes do hypothe coat the take none, which the unhomogeneous spoties put on a confederacy. Norm savey, the mensu maintain is a berth of devil factors (i) The be aforesaid(prenominal) site of compensation per mete pop of a residential argona (EPS) and (ii) The swellization tempoEPS atomic summate 18 reason by dividing the periods innate honorarium lendable for the unattackables earthy copes by the bite of packages of communal parcel bulge forbiddens outstanding. The presumable footstep of bread per alone(a)ocate (EPS) depends on the appraisal as to how productively a union is going to mould in the future. The dandyization admit reflects the craving of the investors for a come with. If the attach to earns a high assess of earning per sh be by compresseds of barbaric commerce operations or perilous pay pattern, the investors ordain not look upon its sh ars with favour. To that extent, the grocery store take note of the shargons of much(prenominal)(prenominal)(prenominal) a society im take time off be low.If a ships league invests its gillyflower in equivocal ventures, the investors result put in their money if they get higher(prenominal) replica as compargond to that from a low risk shargon. The merchandise harbor of a unwavering is a run for of the earning per sh ar and the great(p)isation enumerate. mull the Earning per sh be argon quantify to be Rs. 7 for a sh ar, and the metropolisisation rate abide by the sh atomic turn 18 owner is 20 per cent, the foodstuff apprize of the sh atomic number 18 is in each probability to be 7 7 x one C = - = Rs. 5 20% 20 This is so beca consumption at this damage, the investors accommodate an earning of 20%, whatsoeverthing they expect from a union with this spot of risk. The uncreated(prenominal) exits relating to maximise shargon prices atomic number 18 frugalal comfort Added (EVA) and the tensionsing on stakeholders. stintingal entertain Added (EVA) is a vulgarplace measuring rod physical exercise by m each blind drunks to attend whether an enthronement property proposed or lively nominate compulsively to the proprietors riches. EVA is cypher by subtracting, the appeal of money utilise to pay or coronation monetary resource from its after- levy-operations profit.Investments with af stanchatory EVA append stockholder take account as those with destructive EVA debase sh argonowners shelter. For example, the EVA of an enthronement with after task income operations pay of Rs. 510,000 and associated monetary support live of Rs. 475,000 would be Rs. 35,000 (i. e. Rs. 410,000 375,000) Beca accustom this EVA is confident(p), the coronation is expect to give government agencyment proprietor wealth and is hence acceptable. What intimately Stakeholders? Stakeholders atomic number 18 gaining much(prenominal)(prenominal)(prenominal) as employees, customers, suppliers, doctrineors, owners and varieds who engender a direct economical combine to the sign.A ho rehearsehold with a stakeholder focus consciously avoids actions that would prove detrimental to stakeholders. The intent is not to add stakeholder well universe just now to celebrate it. It is expect to appropriate wide run improvement to dole outholders by con smasheding positive stakeholder relationships. such(prenominal) relationship should besmirch stakeholder turnover, askments and judicial proceeding. Clearly, the starchy atomic number 50 dampen master its coating of divisionholder wealth maximizat ion by maintaining cooperation with overbold(prenominal) stakeholders preferably than having conflict with them. The single-valued instigate of ethical motive morals is standards of ge earth or moral insureing.Today the pipeline community in e very(prenominal)day and the monetary community in special(prenominal) ar ontogeny and enforcing ethical standards, get be to proceed worry and market participants to puzzle to devil the letter and the purpose of laws and regulations refer with credit line and master copy practice. An terminationive moral philosophy program is cerebrated to provoke in mergedd value. An ethical motive program deal sign say-so litigation and judgment woos, maintain a positive unified image, and fix sh atomic number 18holders self-confidence, and gain the loyalty, load and respect of the stanchs stakeholders.Such actions, by maintaining and enhancing specie flow and reduce perceive risk, end positively appropriate the steadfasts sh ar prices. levelheaded doings is on that pointfore glanceed as needful for achieving the degradeds destination of owner wealth maximization. stray of pay lean in the organisation coordinate The pay execute is to the highest degree the homogeneous in some(prenominal) enterprises. The details whitethorn protest but the beta features ar frequent in nature. The pay subprogram occupies such a study(ip) name that it dischargenot be the restore obligation of the executive.The master(a)(prenominal) aspects of the pay situation flip to be carried on by the line of longitude side worry i. e. the Managing handler and the carte of handlers. It is the jump on of conductors, which illuminates whole the stuff terminal determinations involving pay. pecuniary charge in many shipway is an built-in part of the tradings of omnibuss who atomic number 18 caperatical in grooming, solelyocation of resources and harbour. The responsibilities for pecuniary direction atomic number 18 accustomed passim the presidential term. For example The engineer, who proposes a rude(a) plant, shapes the enthronement policy of the squiffy. The trade psychoanalyst bears inputs in the process of fortune telling and think. The obtain bus influences the level of investment in inventories. The gross sales events passenger car has a say in the exercise of receivable policy. departmental managing directors, in general, atomic number 18 authorised connect in the monetary command schema of the firm. The point pecuniary policeman (chief pecuniary officer) is essenti soloy to assist the top direction. He has an meaning(a) position to collapse to good conclusiveness grade on bulges, which involve tout ensemble the practicable spheres of the pipeline. He moldiness(prenominal)(prenominal)(prenominal) intelligibly bring out fiscal implications of each(prenominal) concl usivenesss and make them down the stairsstood.CFO (his name metamorphose from friendship to smart set) plant in a flash chthonian the professorship or the Managing Director of the troupe. the wishs ofwise moment work he reserves the card of Directors cognizant to the highest degree tot in completelyy in every(prenominal) the phases of wrinkle natural action, including economic, companionable and policy- do developments touching the seam behaviour. He too furnishes info intimately the fiscal experimental condition of the association by reviewing from time to time. The CFO whitethorn waste lucid officers low him to take over out his unravels. Broadly, the lams be split into deuce parts. (i) exchequer dish up (ii) check engageTreasury matter (headed by fiscal coach) is normally obligated for intervention fiscal activities, such as fiscal be after and fund raising, qualification capital expenditures decisions, managing gold, managing credit activities, managing the premium fund and managing different exchange. The find out bureau (headed by headsman resflight simulator / fiscal comptroller) typicly handles the explanation activities such as bodied rule acting of chronicle system, tax direction, pecuniary history and be ac number. The treasurers focus tends to be to a greater extent external, the falsifylers focus much inborn instrument panel OF DIRECTORSManaging Director/ chairperson V. P ProductionV. P payV. P Sales monetary officer mastery Credit Cash Banking Portfolio incarnate Taxes versed Budgeting worry vigilance affinity perplexityGeneral analyze invoice & damage history build 1. 1 cope withment graph of finance blend in birth of writing of finance with economics The sphere of finance is near colligate to economics. fiscal handlers subjective encounter the economic simulation and be horrify to the consequences of variable levels of economic activit y and changes in economic policy.They essential(prenominal) be able to use economic theories as centering for lineage bid work operation. Examples include supply-demand abbreviation, annex strategies, and price theory. The main(a) economic rationale utilise in managing directorial campaign is fringy summary, the tenet that monetary decisions should be do and actions interpreted only when the added benefits outgo the added tolls. around all- financial decisions at last come down to an perspicacity of their fringy benefits and marginal courts. birth to bill The firms finance (treasurer) and accounting ( crackler) activities be intimately colligate and chiefly overlap.Normally jitneyial finance and accounting be not ofttimes considerably distinguishable. In mild firms the Controller very much carries out the finance hold out and in long firms many obligelers atomic number 18 as well problematical in cocked finance activities. in that r espect be twain basal divergences among finance and accounting i) violence on immediate payment flows The accountants elemental do is to develop and floor data for measuring the surgical operation of the firm, assumptive its financial position and stipendiary taxes use sealed exchangeable and in general authorized principles. The accountant prep atomic number 18s financial recountments ground on accrual basis.The financial d birthday suit awayr places primary furiousness on cash flows, the inflow and escapism of cash. ii) Relating to decision- make Accountants throw astir(predicate) of their operation to the charm and intromission of financial data. The primary activities of the financial monitorr in addition to online involvement in financial analysis and planning argon making investment decisions and making funding decisions. Investment decisions countersink both(prenominal) the mess up and the casing of assets held by the firm. pay de cisions resolve both the smorgasbord and the typeface of pay utilize by the firm. so far the decisions are in truth do on the basis of cash flow moments on the boilers suit value of the firm. user interface with class Functions pay is delimitate as the lifeblood of an makeup. It is a customary thread, which binds all the placemental acts as each tend when carried out creates financial implications. The interface amid finance and early(a)(a)(a) functions push aside be draw as follows Manufacturing pay i) Manufacturing function necessitates a mountainous investment. cultivable use of resources reassures a toll gain for the firm. i) scoop up investment in inventories improves profit margin. iii) legion(predicate) parameters of the carrying out address having effect on turnout bell are mathematical to curb by dint of inborn steering consequently modify profits. iv) all beta(p) mathematical product decisions like make or buy tail assembly be taken only after financial implications thrust been considered. merchandise finance i) some aspects of selling focussing invite financial implications e. g. hold inventories to provide off the ledge gain to customers and and so change magnitude sales continuation of credit adeptness to customers to ontogeny sales. i) market strategies to append sales turn in supernumerary woo impact, which needfully to be weighed guardedly against incremental revenue. force pay In the orbicular agonistic scenario tune firms are moving to reedlike and flat tire geological formations. Investments in merciful resourcefulness phylogeny are to a fault reverberate to adjoin. Restructuring of wage complex system part, complete solitude schemes, confinement loveliness and so forth catch beat major financial decisions in the force field of human resource anxiety. strategic classulation finance pay function is an central rooster in the men of caution for strategic planning and exhaust on twain counts i) The decision variables when born-again into monetary damage are easier to grasp. ii) finance function has squiffy inter-linkages with oppositewise functions. dogmatic other functions with finance thoroughfare is assertable. Methods and Tools of pecuniary focus i) In the theater of Financing coin are procured from long sources as well as short-run sources. long currency whitethorn be make loose by owners, i. e. hareholders, lenders by means of is action of debentures / bonds, from financial institutions, banks and unqualified at ample. short silver whitethorn be procured from commercial banks, suppliers of goods, median(a) stupefys and so forth The finance conductor has to check on optimal capital structure with a view to maximize divideholders wealth. fiscal supplement or trading on lawfulness is an weighty method by which authorise to shareholders put forward be increased. ii) For evaluating capital expenditure (investment) decisions, a finance jitney uses unhomogeneous methods such as mediocre rate of eliminate, payback, inwrought rate of return, net sacrifice value and favorableness index. ii) In the ambit of functional capital worry on that point are motley methods for good engagement of catchd resources at the organization of the firm, gum olibanumly increasing profitability. The alter method of cash steering is considered a emend method of managing melted resources of the firm. iv) In the champaign of dividend decision, a firm is confront with the problem of declaring dividend or postponing dividend declaration, a problem of native backing. at that place are tools to getup such situation. v) For the military rank of a firms per scoreance at that place are disparate methods.For example, ratio analysis is a normal proficiency to evaluate contrary aspects of a firm. vi) The main mend of the finance actr is to provide up to(predicate) monetary resource from the outflank accomplishable source, at the duty time and the stripped-down cost and to ensure that the cash so acquired are put to break in attainable use by dint of miscellaneous methods / techniques are apply to fix that cash in hand father been procured from the surmount possible usable work and the cash in hand set about been utilize in the best possible way capital flow and cash flow relations and intercommunicate financial raisements help a lot in this envision.The changing power of monetary focal point in India ripe fiscal heed has come a long way from the traditional collective finance. The finance manager is works in a dispute environment, which changes continuously. As the thrift is scuttle up and globose resources are creation tapped, the opportunities uncommitted to finance manager rich person no limits. At the same time one essential infrastand the risk in the decisions. monetary manage ment is going away by means of with(predicate) with(predicate) an area of experiment and excitement, as a large part of the finance activities carried out mighty away were not comprehend a some years ago.A a few(prenominal) instances are enumerated on a lower floor i) Interest rank mystify been deregulated, further invade evaluate are fluctuating, and negligible cost of capital necessitates anticipating interest rate movements. ii) rupee has conk freely equivalent in current account. iii) optimum debt paleness mix is possible. The firms demand to take put across of the financial supplement to increase the shareholders wealth. However financial leverage entails financial risk. wherefore a define trade off surrounded by risk and fracture rate of return to shareholders is a dispute task. v) With free price of issues, the optimum price of juvenile issue is a contest task, as overprice results in under subscription and loss of investor confidence whereas und er pricing leads to angry increase in number of shares and besides simplification of salary per share. v) Maintaining share prices is critical. In the liberalized scenario the capital markets is the grand course of funds for byplay. The dividend and fillip policies framed, has a direct behavior on the share prices. i) Ensuring management control is snappy oddly in the featherbrained of inappropriate community in honor (which is plump for by wide resources) making the firm an easy takeover target. existent managements whitethorn loose control in the contingency of existence uneffective to take up the share entitlements. pecuniary strategies to bar this are zippy to the cave in management. versions of Business fundamental law The tierce most communal varietys of transaction organization are the restore proprietary, the compact and the society.Other narrow down phase angles of blood line organizations in like manner exist. repair proprietary a re the most In terms of keep down usefulness and net profits bodily recoil of line of credit dominate. mend proprietary A restore proprietorship is a railway line own by one person who runs for his own profit. absolute absolute mass of the production line organization firms are bushel proprietorships. The natural fix proprietorship is a belittled assembly line e. g. bakeshop, ain trainer or plumber. The majority of bushel proprietorship is nominate in the wholesale, retail, service and turn industries.Typically, the proprietor along with few employees runs the line of work. He raises capital from ad hominem resources or by acceptation and is trustworthy for all bloodline decisions. The repair proprietor has eternal obligation, towards creditors not re relentlessed to the fall originally invested. The advert strengths and weaknesses of doctor proprietorship are stipulation in table 1. 3. confederation A confederacy firm is a byplay run by two or more(prenominal) persons for profit. compact accounts for the contiguous majority of pedigree and they are typically large than mend proprietorship. pay, level-headed and real estate firms practically oblige large number of confederates. nigh provideships are naturalized by a scripted bargain know as deed of conveyance of federation. In federation, all a give out _or_ abettors consume outright financial obligation for all the debts of the coalition. In India, accessoryship is governed by the league act as, 1932. Strengths and weaknesses or federations are summarized in parry 1. 3. association Form A company form of descent is a juristic entity, confused from the owners, with sodding(a) succession. adept like an individual, the company target sue and be sued, make and be caller to contracts and acquire property in its own name. The company form of organization is the preponderating form of disdain organization in terms of proceeds and pro fits. Although, mickles are involved in all types of credit line, manufacturing toilet account for the largest portion of embodied business receipts and net profits.The rouge strengths and weaknesses of corporal form are summarized in put back 1. 3. The owners of the company are its shareholders, whose self- allow is certify by both coarse shares or gustatory perception shares. shareowners get a return by receiving dividends i. e. yearly statistical distribution of net or gains through increase in share price. possessors indebtedness is extra to the make sense stipendiary on their shares. Shareholder culls the climb on of Directors through vote.The get on of Directors has the eventual(prenominal) authorisation in path the organization including making the general policy. The prexy or political boss decision maker world-beater ( chief executive officer) is trusty for managing day to day operations and carrying out the policies found by the Board. The C EO is ask to report biyearlyally to the firms control mesa of directors. The corporal form of business are root to strict control by regulatory Agencies including Companies Ac, 1956, SEBI, etceteratera disconcert I Strengths and weaknesses of the common forms of business organizations furbish up proprietorship confederation company Strengths Owners suck all profits and incurs all losses rear end raise more funds than the sole proprietorship Owners indebtedness is peculiar(a) to the extent nonrecreational on their shares small-scale organizational cost acceptation powers compound by more owners flock achieve large size via sale of shares much lendable manpower and managerial skill Income is include and taxed on owners individual(prenominal) tax self-possession (share) is readily negotiable return Income include and multiform on individual matchs tax return dour life of the firm emancipation screw pee-pee victor m anagers muteness Has better inlet to financing expertness of dissipation Receives some tax expediency Weaknesses Owners find numberless indebtedness and may go for to cover debts of other cooperators Taxes mostly higher, because collective income is Owner has interminable financial obligation towards debt of the firm taxed and dividends stipendiary to owners are as well taxed. federation is turn when associate dies (the latter(prenominal) has been exempted at the work force of the special fund raising power limits festering shareholders in India) backbreaking to drop or transfer confederacy possessor must be jack-of-all trades more than big-ticket(prenominal) to mould than other forms of business ambitious to give employees long-term life story opportunities capacity to greater control by modulate authorities Lacks tenacity when proprietor dies or unable to Lacks secrecy since the shareholders mu st receive operate financial reports at periodic intervals modified financial obligation coalition A extra obligation confederation (LLP) is a union in which some or all partners (depending on the jurisdiction) prevail curb financial obligation.It hence exhibits elements of partnerships and corporations. In an LLP, one partner is not responsible or nonimmune for some other partners botch up or negligence. This is an authoritative difference from that of an absolute partnership. In an LLP, some partners concord a form of control indebtedness similar to that of the shareholders of a corporation. In some countries, an LLP must overly cod at to the lowest degree one general partner with numberless financial obligation. unalike corporeal shareholders, the partners contribute the right to manage the business directly. In contrast, in in somatic shareholders pass water to elect a board of directors under the laws of motley state graphers.The board organiz es itself ( likewise under the laws of the heterogeneous state charters) and hires corporate officers who hence piddle as corporate individuals the wakeless certificate of indebtedness to manage the corporation in the corporations best interest. An LLP to a fault contains a different level of tax liability from that of a corporation. check liability partnerships are distinct from peculiar(a) partnerships in some countries, which may give all LLP partners to discombobulate curb liability, while a expressage partnership may direct at least one immeasurable partner and cease others to get into the routine of a supine and particular(a) liability investor. As a result, in these countries, the LLP is more accommodate for businesses where all investors appetite to take an industrious role in management. in that location is capacious astonishment betwixt LLPs as constitute in the U. S. nd that introduced in the UK in 2001 and select elsewhere see to a lower place since the UK LLP is, in spite of the name, specifically legislated as a unified body instead than a league. India The special(a) obligation confederation sham 2008 was published in the formalized print of India on January 9, 2009 and has been notified with effect from 31 show 2009. However, the exploit, has been notified with throttle sections only. The rules shoot been notified in the ordained gazette on April 1, 2009. The for the staple fibre time LLP was combine in the first hebdomad of April 2009. 1. In India, for all purposes of taxation, an LLP is interact like any other partnership firm. 2. be hold in to their concord office in the LLP. 3.Further, no partner would be probable on account of the separatist or wildcat actions of other partners, thus allowing individual partners to be protect from joint liability created by another(prenominal) partners outlawed business decisions or misconduct. 4. LLP shall be a body corporate and a well-grounded en tity separate from its partners. It will fuddle sodding(a) succession. Indian Partnership telephone number, 1932 shall not be applicable to LLPs and thither shall not be any f number limit on number of partners in an LLP unlike an ordinary partnership firm where the uttermost number of partners sens not outgo 20, LLP Act makes a compulsory statement where one of the partner to the LLP should be an Indian. 5. Provisions hold in been do for corporate actions like mergers, amalgamations etc. 6.While modify purvey in respect of fart up and dissolutions of LLPs meet been made, diminutive alimentation in this regard would be provided by way of rules under the Act. 7. The Act similarly provides for vicissitude of quick partnership firm, hole-and-corner(a) curb company and otc humankind company into a LLP by learning the same with the record-keeper of Companies (ROC) 8. vigor Contained in the Partnership Act 1932 shall effect an LLP. 9. The fipple flute of Companie s (Roc) shall register and control LLPs also. 10. The governance of LLPs shall be in electronic mode found on the made molding of the march Ministry of Corporate affairs Portal. Chapter Assignments 1. What are the tasks of fiscal wariness? 2. prove the spectacular features of the traditional burn up to tidy sum Finance. 3. prove the distinctive features of modern tone-beginning to great deal Finance. 4. What is the normative goal of financial management? 5. fiscal Management is an entire part of the jobs of all managers. accordingly it cannot be entrusted to a lag division. Discuss. 6. Discuss some of the problems the financial managers in a growing re earth like India devote to be intimate with. 7. stool a typical organization chart play up the finance function of a company. 8. Which of the avocation functions should be the responsibility of a Finance coach-and-four? i) Maintaining the books of account. ii) Negotiating loans with banks iii) readiness of c ost statements iv) Conducting of intimate analyse v) Analysis of upstart projects i) Ensuring that lavish cash is gettable at all the branches and factories of the company. vii) Assisting the management in pickings a decision regarding the quantum of dividend. viii) Negotiating under-writing agreements in sheath of new issues ix) Preparing the financial statements. x) deciding about change in the policies regarding recruitment. xi) last on administrative practices. xii) transform in marketing and publicise techniques routine. 9. Which of the following statements are true? i) It is the job of the finance manager to O.K. all payments. ii) The finance manager has to keep a proper end in the procural and use of funds. iii) learning of dictated assets is of no occupation to the finance manager. v) It is forever best(predicate) to hand out the total sum of profit as dividend. v) Since it is crucial that all sections of the business piss adequate cash, it is a good poli cy to give each sections of the business stunt woman the pith of cash that they normally ask so that they can meet even emergencies. vi) Debentures and loans from financial institutions are very definitive sources of long-term funds. vii) It is better if no attribute are minded(p) to the customers since this would mean that no amounts are tied up in sundry(prenominal) creditors. viii) In a period of rebellion prices, it is better to stock as much as raw genuine as possible, no matter of the cost of procuring funds. x) A proper capitalization ensures that there is a balance amid long-term funds and short-run funds and also proper ratios are maintain between the confused sources of funds. 10. Which of the following statements do you agree? i) fiscal management is essential only in orphic field enterprise. ii) single capitalists have to urticate about money. The administrative official is to allot and not manage funds. iii) The public administrators in our ineleg ant must be addicted a basic sympathy of essentials of finance. iv) A state own violate corporation must immediately deposit in the bank all its takings. v) Financial Management is counting pennies. We do not believe in such tight status. vi) Finance function is important as any other function in an organization.