Financial Management – Meaning, Objectives and Functions

Meaning of Financial Management Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise. Scope/Elements Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions.Financial decisions – They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby. Dividend decision – The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two: Dividend for shareholders- Dividend and the rate of it has to be decided. Retained profits- Amount of retained profits has to be finalized whi ch will depend upon expansion and diversification plans of the enterprise.Objectives of Financial Management The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be- To ensure regular and adequate supply of funds to the concern. To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders. To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost. To ensure safety on investment, i. , funds should be invested in safe ventures so that adequate rate of return can be achieved. To plan a sound capital structure-There should be sound and fair composition of capital so that a balance is maintained between debt and equity capital. Functions of Financial Management Estimation of capital requirements: A finance manager has to make estimation wi th regards to capital requirements of the company. This will depend upon expected costs and profits and future programmes and policies of a concern. Estimations have to be made in an adequate manner which increases earning capacity of enterprise.Determination of capital composition: Once the estimation have been made, the capital structure have to be decided. This involves short- term and long- term debt equity analysis. This will depend upon the proportion of equity capital a company is possessing and additional funds which have to be raised from outside parties. Choice of sources of funds: For additional funds to be procured, a company has many choices like- Issue of shares and debentures Loans to be taken from banks and financial institutions Public deposits to be drawn like in form of bonds.Choice of factor will depend on relative merits and demerits of each source and period of financing. Investment of funds: The finance manager has to decide to allocate funds into profitable v entures so that there is safety on investment and regular returns is possible. Disposal of surplus: The net profits decision have to be made by the finance manager. This can be done in two ways: Dividend declaration – It includes identifying the rate of dividends and other benefits like bonus. Retained profits – The volume has to be decided which will depend upon expansional, innovational, diversification plans of the company.Management of cash: Finance manager has to make decisions with regards to cash management. Cash is required for many purposes like payment of wages and salaries, payment of electricity and water bills, payment to creditors, meeting current liabilities, maintainance of enough stock, purchase of raw materials, etc. Financial controls: The finance manager has not only to plan, procure and utilize the funds but he also has to exercise control over finances. This can be done through many techniques like ratio analysis, financial forecasting, cost and p rofit control, etc

My Parents Money essays

My Parents Money essays Towards the end of my high school education I had decided I wanted to go to college to become a Veterinarian, and specialize in Equine Sciences. Every detail was planned out; which college I would attend, my housing, a part-time job, and how much it was all going to cost. Both my parents and I were very excited, but there was just one problem. How was I going to pay for my education? I filled out the Free Application for Federal Student Aid. Even though my parents were divorced and I was living with my Mother, I was required to put both of their incomes on the application because my Father paid child support. I was seen as being dependant on both incomes. Due to the amount of my parents annual incomes, I was denied any financial aid. The report I received from the Federal Financial Aid Office stated that my parents were expected to pay for my education. Because of the divorce, the incomes were now divided between two homes and my parents were unable to help me with my financial needs for college. I investigated other options such as scholarships, jobs, and work programs. Every option came to a dead end, there just were not any resources available for such a privileged person, or so that is what I was being told. I understood my parents being unable to help me, I even understood how I could be seen as being privileged, but I could not understand how a country that preaches that the education of our youth is the future of our society, was telling me that I would not be getting any assistance. I think it is ridiculous that the Federal Government has decided, based solely upon income, which parents will be expected to contribute to the education of their children. It is after all the parents money, and they too have worked very hard to be where they want to be. Why should parents have to forfeit their lifestyle to put their children through college? At the age of eighteen, children are ...

Free Essays on Macbeth’s Responsibility

The disaster in Macbeth mainly revolves around one person, Macbeth. Although other outside conflicts influenced Macbeth to start his killing spree, most of the killings are committed by Macbeth. The witches and Lady Macbeth were the ones who helped pushed him along his self-destruction path, but ultimately Macbeth decided to carry out the evil deed of murdering Duncan by himself. Macbeth’s meeting with the three witches is what first incites the disaster when they tell him that he is to be the Thane of Cawdor and King of Scotland. Macbeth is surprised by this news and wants to hear more. Macbeth writing to his wife about his encounter with the witches also proved to be a mistake because she became ambitious about Macbeth becoming king and she becoming queen. Macbeth had outside influences involved in the death of Duncan, but the other deaths in the play are caused only by Macbeth. Macbeth was also responsible for the deaths of Duncan’s guards when he said â€Å"O, yet I do repent me of my fury, That I did kill them.† (A2, S3, 100-101) He had no reason for killing them but his rage enabled him to be irrational. When Macbeth became suspicious about Banquo knowing that he had killed Duncan, Macbeth ordered him and his son Fleance to be killed. Banquo was killed and Fleance escaped, which upheld the witch’s prophesy that Banquo’s future would not be happy and that his offspring would be kings. Macbeth showed his true evil when he ordered Banquo and his son to be killed. It showed that he had the ambition to act in a way that would protect his lust for power by retaining the throne of Scotland. When Macduff fled to England, Macbeth ordered that Lady Macduff and her children be killed. He shows no mercy in ordering so, he says: â€Å"Seize upon Fife, His wife, his babes, and all unfortunate souls that trace him in his line.† (A4, S2, 151-152) Macbeth is the one responsible for the disaster in Macbeth. Lady Macbeth’s... Free Essays on Macbeth’s Responsibility Free Essays on Macbeth’s Responsibility The disaster in Macbeth mainly revolves around one person, Macbeth. Although other outside conflicts influenced Macbeth to start his killing spree, most of the killings are committed by Macbeth. The witches and Lady Macbeth were the ones who helped pushed him along his self-destruction path, but ultimately Macbeth decided to carry out the evil deed of murdering Duncan by himself. Macbeth’s meeting with the three witches is what first incites the disaster when they tell him that he is to be the Thane of Cawdor and King of Scotland. Macbeth is surprised by this news and wants to hear more. Macbeth writing to his wife about his encounter with the witches also proved to be a mistake because she became ambitious about Macbeth becoming king and she becoming queen. Macbeth had outside influences involved in the death of Duncan, but the other deaths in the play are caused only by Macbeth. Macbeth was also responsible for the deaths of Duncan’s guards when he said â€Å"O, yet I do repent me of my fury, That I did kill them.† (A2, S3, 100-101) He had no reason for killing them but his rage enabled him to be irrational. When Macbeth became suspicious about Banquo knowing that he had killed Duncan, Macbeth ordered him and his son Fleance to be killed. Banquo was killed and Fleance escaped, which upheld the witch’s prophesy that Banquo’s future would not be happy and that his offspring would be kings. Macbeth showed his true evil when he ordered Banquo and his son to be killed. It showed that he had the ambition to act in a way that would protect his lust for power by retaining the throne of Scotland. When Macduff fled to England, Macbeth ordered that Lady Macduff and her children be killed. He shows no mercy in ordering so, he says: â€Å"Seize upon Fife, His wife, his babes, and all unfortunate souls that trace him in his line.† (A4, S2, 151-152) Macbeth is the one responsible for the disaster in Macbeth. Lady Macbeth’s...

Roman Gladiators vs. the Gladiator Movie

Roman Gladiators vs. the Gladiator Movie In May 2000,  Gladiator  opened in movie theaters. Maximus Decimus Meridius (Russell Crowe) is a successful general from the Battle of the Danube under Marcus Aurelius (Richard Harris). Commodus (Joaquin Phoenix), son of Marcus Aurelius, condemns Meridius to probable death by sending him into the gladiatorial arena. Commodus isnt merely sending to an uncertain death the general he perceives as a threat to his throne. The new emperor himself enters the arena to ensure Meridius permanent  end. If the plot seems a bit far-fetched, its not- at least in the most obvious way, because Commodus and probably another half dozen emperors did indeed set foot in the arena. Emperor Gladiators The adulation of the crowds has to be among the most compelling reasons to become a gladiator. At first, gladiators were slaves, criminals condemned to death, and war prisoners. In time, free men volunteered to become gladiators. Brooklyn Colleges Roger Dunkle says it has been estimated that by the end of the Republic, half the gladiators were volunteers. There were even women gladiators. That Emperor Septimius Severus banned female gladiators suggests that by the beginning of the third century A.D., there was a sizable number of such Amazons. Two of the mad emperors, Caligula and Commodus, appeared as gladiators in the arena. Seven other emperors who werent demented, including Titus and Hadrian, either trained as gladiators or fought in the arena. The Gladiator Was Honored but Unrespectable Anyone who became a gladiator was, by definition, infamis (whence: infamy), not respectable, and beneath the law. Barbara F. McManus says gladiators had to swear an oath (sacramentum gladiatorium): â€Å"I will endure to be burned, to be bound, to be beaten, and to be killed by the sword.†Ã‚  This consigned the gladiator to possible death, but also conferred honor, much like that of a soldier. Not only was there honor for a gladiator, but there were adoring crowds, and, sometimes there was wealth (victors were paid with a laurel, monetary payment, and donations from the crowd) and a life of leisure. Some gladiators may have fought no more than two or three times a year and may have won their freedom within very few years. Because of the financial incentive, free men and even aristocrats who, having squandered their inheritance had no other comfortable means of support, would voluntarily become gladiators. At the end of his service, a freed gladiator (as a token, he received a rudis), could teach other gladiators or a he could become a freelance bodyguard. The plot is familiar: In todays movies, the ex-boxer, having survived dozens of bloody KOs with only a few disfigurements, becomes a manager or trainer at a boxing school. Some popular sports figures become sportscasters. occasionally, they become television or movie personalities or even politicians. Political Gladiator Fights An editor is a person who gives something forth into the public, like a public game. In the Republic, the Editores were politicians who, wishing to curry public favor, would put on fights between gladiators and animal shows. Today, municipalities build stadiums with tax dollars, a burden shared rather than being shouldered by a benefactor. The person with the status of the editor may be the owner of the sports team. Onto the floor of the amphitheater sand was poured to absorb blood. The word for sand in Latin is harena, from which our word arena comes. Sources depthome.brooklyn.cuny.edu/classics/gladiatr/gladiatr.htm, Roger Dunkle on Gladiators www.ualberta.ca/~csmackay/CLASS_378/Gladiators.html, Blood Sport

Questions 1 and 2 Essay Example | Topics and Well Written Essays - 750 words

Questions 1 and 2 - Essay Example This includes to the society, government, world, and the  community  (Peter, 1997: p.112). The foremost purpose of the development of a business is not to  attest  to these responsibilities but is the  responsibility  to itself; making profits. Other aspects of the market and non market components also  have  effect  on the  business  and are also in turn affected by the business. Issues such as the population, government regulations, environmental  conservation  and social health  responsibility  are in  effect  of this. NGOs are entities created by individuals or groups within the  society  to deal with  certain  issues in the  society  through advocating, lobbying, electoral support,  judicial  action  and coalition building. In order to deal with such issues, they may even sometimes  conform  to public and  private  politics. This is for the  business  to  correct  its issues and consumers to  attain  their r ights. Such NGOs act as watch dogs for the external components of business such as the environment and people. Through such ways as discussed above they are able to  ascertain  for the fulfillment of the responsibilities that the business has. In the conduction of this, it also acts as a check on the governments effects on the business environment that in turn affect the people. This is through actions such as  harsh  regulations and taxes. ... This includes such aspects as discussed above on environmental, societal, regulatory and employee  consideration. This has culminated the  advent  of altruistic behavior in organizations fearing tainting their image, lobbyism against them and law suits. It can so be concluded that, NGOs do play a particularly crucial role in ensuring adherence to responsibilities by corporations and organizations  thus  positive behavioral actions (Keck, 1998: p.56). 2. Regulation of HRM activities of MNCs via the introduction of Minimum Labor Standards into international agreements on free trade Multinational corporations are currently extremely emerged in the economies of the world. This has brought about the development of super powers, and this  superiority  over other  nation’s economies has its adverse effects. Issues such as  employment  creation, improved living conditions, and industrialization are some of the benefits of such international trade. On the other hand , there are adverse effects such as the  killing  of local industries, social dumping, tax evasions and illegalities within the corporations that may occur (Tarrow, 2005: p.86). As a result of these various effects, it is of the suggestion that the human resource management activities of multinational corporations should be checked through the  introduction  of minimum labor standards into the  international  free trade agreements. Through the  application  of such minimum labor standards, some of the multinational corporations that consider themselves with key investors in the  foreign  economies kept at bay. As, such they lack the opportunity to  threaten  such economies with the rights

How Decisions in Customer Service will Impact the Level of Sales and Essay

How Decisions in Customer Service will Impact the Level of Sales and the Ultimate Profitability of the Organization - Essay Example A lot of companies have invested significant resources in into developing the quality of customer service in their companies in order to increase customer satisfaction and increase the level of customers who become loyal to the company. Gilbert and Veloutsou (2006) acknowledge that indeed customers are the key to long term business success, profitability and growth. In response to a business environment that is increasingly competitive, a growing number of companies are increasingly using their customer service personnel to build long term relationships with clients, with different organizations adopting IT based strategies in order to better manage their customer relationships. The benefits of a satisfied customer are recognized widely in marketing as well as management literature (Sui-Hua Yu, 2007; Palic, Maricic, & Kovac, 2011). Indeed various research have linked a positive relationship between high quality customer service, o customer loyalty in terms of repeated purchases, cros s buying behavior and reduce price sensitiveness of the consumers (Ibrahim & Najjar, 2008; Oliver, 1997; Bloemer & Odekerken-Schroder, 2002; Yu, Shean-Yuh, & Yu-Yi, 2011). ... Problem Statement Most organizations have to deal with the issues of high quality customer service and the impact that such services have on corporate profitability in their course of business. This research considers the relation between these two specifically analyzing the impact that customer service decisions have on company sales and hence profitability. Company sales and profitability are in this case impacted by high customer loyalty due to their satisfaction with the quality of services that they receive. Over the past two decades there has been an increase in customer focused strategies towards increasing company growth. Notably in the new economics of customer service orientation, customers are the central concern of the management of any of any organization. In this sense, the management focuses on factors that drive profitability within the service paradigm ranging from training and development of customer service, compensation that is linked to performance, investment in customer service management systems, and investment in frontline employees (Heskett, Jones, Loveman, Sasser, Jr, & Schlesinger, 2008). There has been a wide array of research that has been carried out on the connection between customer service, customer loyalty and the impact that these have on profitability within an organization. While a lot of study have focused on fast consumer moving goods or the financial products or service (Bloemer & Odekerken-Schroder, 2002; Yu, Shean-Yuh, Yu-Yi, 2011; Sui-Hua Yu, 2007; Palic, Maricic, & Kovac, 2011), none has looked into the mass merchandising sector. This paper focuses on this sector by analyzing consumer shopping behavior and customer service in Beira Mar Mall, which houses a wide array of stores

Music Censorship Research Paper Example | Topics and Well Written Essays - 1750 words

Music Censorship - Research Paper Example By the end of the 1950’s, the new generations had already begun expressing their new perceptions on the issues of sex, drugs and violence thereby bringing the need for censorship in music. The issues of sex and drugs no longer became secret but were openly talked about thereby making censorship in music vital. The musicians in America can save their communities’ morals and their money if the country had an efficient legal system that included stringent laws against censoring music by discarding racial motivations in their music. The legislation of anti-racist laws by the government may also play an important role in helping to curb the matter. For example, with the onset of rhythm and blues music that is greatly associated with black musicians, the issues of sex and drug use became more openly spoken about. The majority of the white population reportedly perceived this music as being responsible for the drug’s use and violence found among the black youths. In reg ards to these accusations and trends, many songs by various black artists have been banned and termed as controversial, and they should, therefore, discard these lyrics. This is because such content will prevent the young people from leading ethical lives while at the same time affecting them negatively in their growth. With the song the ’pill’ by Lynn Loretta in the year 1975, many radio stations banned this music though it led to the growing popularity of contraception among the youth and an increase in unsafe sexual practices within their community.... blues music that is greatly associated with black musicians, the issues of sex and drug use became more openly spoken about (Johnson & Cloonan, 2009). The majority of the white population reportedly perceived this music as being responsible for the drug’s use and violence found among the black youths. In regards to these accusations and trends, many songs by various black artists have been banned and termed as controversial, and they should therefore discard these lyrics (Nuzum, 2001). Musicians should avoid producing music that will instill fear among their young listeners. This is because such content will prevent the young people from leading ethical lives while at the same time affecting them negatively in their growth. For instance, with the song the ’pill’ by Lynn Loretta in the year 1975, many radio stations banned this music though it led to the growing popularity of contraception among the youth and an increase in unsafe sexual practices within their com munity. These activities in turn lead to unwanted pregnancies and life threatening diseases which become very expensive to their guardians and the system as a whole (Burns, 2004). The issues of speech freedom are protected through the first amendment made on the American constitution. The censorship of music within the United States has brought forth suppression in public communication and speeches made by several individuals or groups. The freedoms awarded to the American society regarding their speeches have also brought controversies and contests. For example, during the cold war era numerous anti-communist sentiments were allowed and hate speeches as long as the speaker did not incite other people to indulge in illegal activities, which raised controversy (Johnson & Cloonan, 2009). The first amendment