Estimating Financial Requirements
Estimating Financial Requirements
The first task of the financial manager is to
estimate short term and long-term financial requirement of his business. For this purpose,
he will prepare a financial plan for present as well as future. The amount required for
purchasing fixed assets as well as the needs of funds for working capital has to be
Financial management
Financing decision Investment Decision Dividend Decision Risk and Return Relationship To achieve the goal of Profit Maximization ascertained. The estimation should be based on the sound financial principles so that
neither there are inadequate or excess funds with the concern. The inadequacy will affect
the working of the concern and excess funds may tempt a management to indulge in
extravagant spending.
The first task of the financial manager is to
estimate short term and long-term financial requirement of his business. For this purpose,
he will prepare a financial plan for present as well as future. The amount required for
purchasing fixed assets as well as the needs of funds for working capital has to be
Financial management
Financing decision Investment Decision Dividend Decision Risk and Return Relationship To achieve the goal of Profit Maximization ascertained. The estimation should be based on the sound financial principles so that
neither there are inadequate or excess funds with the concern. The inadequacy will affect
the working of the concern and excess funds may tempt a management to indulge in
extravagant spending.
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