Finance

Functions of Finance

Functions of Finance

Functions of Finance Generally, finance functions are carried on to achieve the goals of the firm. The Finance Function is a part of financial management. Finance functions are mainly viewed from two approaches; ‘raising of funds’ and ‘raising and allocation of funds’. In.....

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Common Managerial Finance Functions

Common Managerial Finance Functions

Common Managerial Finance Functions Financial management is that managerial activity which is concerned with the planning and controlling of the firm’s financial resources. Managerial finance functions are functions that require managerial skills in their planning, execution, and control. Manag.....

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Routine Finance Functions

Routine Finance Functions

Routine Finance Functions A company needs to perform some regular activities to complete its managerial activities properly. These are called incidental or routine functions. Routine finance functions are those financial functions which generally do not require managerial involvement to carry ou.....

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Concept of Profit Maximization Objective

Concept of Profit Maximization Objective

Profit Maximization Objective of a Company In the conventional theory of the firm, the principal objective of a business firm is to maximize profit. Profit maximization is the main aim of any business and therefore it is also an objective of financial management. Under the assumptions of given .....

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Criticisms of Profit Maximization Objectives

Criticisms of Profit Maximization Objectives

Criticisms of Profit Maximization Objectives Profit maximization is the main aim of any business and therefore it is also an objective of financial management. Although profit maximization objective is a widely known objective of a firm, some theorists have raised doubts about the validity of thi.....

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Concept of Wealth Maximization Objective

Concept of Wealth Maximization Objective

The concept of Wealth Maximization objective of a Company – The wealth maximization objective is almost universally accepted the goal of a firm. Maximization of profit used to be the main aim of a business and financial management till the concept of wealth maximization came into being. Acc.....

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Decision Process of Wealth Maximization Objective

Decision Process of Wealth Maximization Objective

Prime Decision Process of Wealth Maximization Objective of a Company – Wealth maximization is a modern approach to financial management. It simply means maximization of shareholder’s wealth. The shareholder wealth maximization goal states that management should seek to maximize the pres.....

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Relationship of Corporate Finance with Accounting

Relationship of Corporate Finance with Accounting

Finance is concerned with the acquisition and use of the firm’s financial resources. It is an integral part of the overall management. Therefore, it should be studied along with other disciplines. It is because finance derives heavily the conceptual and analytic foundations from other di.....

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Relationship of Corporate Finance with Economics

Relationship of Corporate Finance with Economics

Finance is concerned with the acquisition and use of the firm’s financial resources. It is an integral part of the overall management. Therefore, it should be studied along with other disciplines. It is because finance derives heavily the conceptual and analytic foundations from other di.....

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Types of Financial Markets

Types of Financial Markets

Financial markets are the place where the transaction of financial instruments and services are taking place. It is a broad term describing any marketplace where trading of securities including equities, bonds, currencies and derivatives occur. It plays a crucial role in allocating limited resou.....

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Concept of Financial Markets

Concept of Financial Markets

Financial Markets The financial environment consists of financial markets, financial institutions, financial instruments and services. Financial markets are the place where the transaction of financial instruments and services are taking place. It is a broad term describing any marketplace where .....

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Concept of Financial Institutions

Concept of Financial Institutions

The concept of Financial Institutions – Financial institutions are organizations that deal with a transaction of financial claims and financial assets. It is an establishment that conducts financial transactions such as investments, loans, and deposits. They issue financial claims against .....

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