Category: Financial Management

Unethical Practices in Cash Transactions | Financial Management

Misappropriation of cash is easier in a big organisation when owner or top management have no time to keep close watch on persons handling cash. The misappropriation can happen in both receipt and payment levels as follows: (a) Misappropriation of Receipt of Cash: The important ways by which money received is misappropriated are as …...

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Unethical Practices in Cash Transactions | Financial Management

Misappropriation of cash is easier in a big organisation when owner or top management have no time to keep close watch on persons handling cash. The misappropriation can happen in both receipt and payment levels as follows: (a) Misappropriation of Receipt of Cash: The important ways by which money received is misappropriated are as …...

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Objectives of Financial Management

After reading this article you will learn about the importance and objectives of financial management. Finance function is one of the three important line functions in an organisation, other two being marketing and production. Hence the management, performance and effectiveness of finance department play a vital role in any organisation. Financial figures like Sales …...

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Concept of Risk-Return in Portfolio Context (With Formulas)

So far our analysis of risk-return was confined to single assets held in isolation. In real world, we rarely find investors putting their entire wealth into single asset or investment. Instead they build portfolio of investments and hence risk-return analysis is extended in context of portfolio. A portfolio is composed of two or more …...

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Expected Return of a Security and Its Risk | Financial Management

Read this article to learn about the relationship between expected return of a security and its risk. Major risk involved in a security is systematic risk and greater the relevant risk of that security, the greater the return required. In other words, the required rate of return for a security is equal to the …...

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Top 3 Features of Taxation Provisions

This article throws light upon the three features of taxation provision in different forms of business organization. The features are: 1. Proprietorship 2. Partnership 3. Company. Taxation Provision: Feature # 1. Proprietorship: The most important feature of taxation provision or proprietorship is that profits of the business are taxed in the hands of the …...

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Top 10 Factors Influencing Choice of Business Organization

This article throws light upon the top ten factors influencing the choice of business organization. The factors: 1. Liability of Owners 2. Life of Organization 3. Transferability of Ownership 4. Flexibility 5. Tax Liability 6. Legal Formalities 7. Geographical Mobility 8. Scope of Expansion 9. Government Control 10. Centralisation of Management Control. Choice of …...

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3 Redeeming Features of Different Forms of Business Organization

This article throws light upon the three redeeming features of different forms of business organization. The features are: 1. Proprietorship 2. Partnership 3. Company. Business Organization Feature # 1. Proprietorship: Proprietorship-the oldest form of business organization is owned, controlled and operated by a single individual who decides policies and carries them into effect. In …...

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Financial Management: Goals, Nature, Scope and Functions

Read this article to learn about Financial Management. After reading this article you will learn about: 1. Goals of Financial Management 2. Nature of Financial Management 3. Scope 4. Functions 5. Cardinal Principles 6. Organisational Framework. Goals of Financial Management: Goals of financial management should be so articulated as to help achieve the objective …...

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Recurring and Non-Recurring Finance Function of a Firm

Read this article to learn about the recurring ad non-recurring finance function of a firm. Recurring Finance Function: Recurring finance function encompasses all such financial activities as are carried out regularly for the efficient conduct of a firm. Planning for and raising of funds, allocating of funds and income and controlling the uses of …...

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