Every Company makes investment in fixed and current assets.ย Fixed assets like e.g., plant and machinery, land and building, vehicles, etc, remains in the business for more than one year. On the other hand, Current assets like inventories, debtors, bills receivables, etc.ย get converted into cash or cash equivalents within one year.ย Some part of these, current assets […]
Working Capital Management Read More ยป
One of the important decisions under financial management relates to the financing pattern or the proportion of the use of different sources in raising funds.ย Most companies plan to raise funds for their capital needs using aย judicious mix between owners funds (equity) and borrowed funds (debt).ย This mix of equity and debt actually used by a
Capital Structure: Concept, Factors Read More ยป
Making decisions has been identified as one of the primary responsibilities of any manager. Decisions may involve allocating resources, appointing people, investing capital or introducing new products.ย Decision-making is at the core of all planned activities. Decision-making is a process of selection from a set of alternative courses of action which is thought to fulfill
Decision-Making: Concept, Process and Techniques Read More ยป
Theย cost of capitalย is the cost of a company’s funds (bothย debtย andย equity). In words of Solomon Erza “The cost of capital is the minimum required rate of earnings or the cut-off rate of expenditure”. From Investor’s point of view, it is theย rate of return, that must be received by the firm on its investment projects, to attract
Cost of Capital: Concept, Types Read More ยป
Management is described as the process of planning, organising, directing and controlling the efforts of organisational members and of using organisational resources to achieve specific goals.ย Different experts have classified functions of management. Henry Fayol distinguishes between the principles and elements of management. Principles are the rules and guidelines, while elements are the functions of management.
Functions of Management: Planning, Organising, Staffing, Directing, Controlling Read More ยป
