Financial Management
Finance – An Introduction
Functions of Finance
According to Paul G. Hasings, “finance” is the management of the
monetary affairs of a company. It includes determining what has to
be paid for and when, raising the money on the best terms available,
and devoting the available funds to the best uses. Kenneth Midgley
and Ronald Burns state: “Financing is the process of organising the
flow of funds so that a business can carry out its objectives in the
most efficient manner and meet its obligations as they fall due.”
Finance exploits the most out of all available rupees. Getting the best out of the available funds is
the main task of finance and the finance manager performs this task most effectively if he is to be
successful. In the words of Mr.A.L.Kingshott, “Finance is the common denominator for a vast
range of corporate objectives, and the major part of any corporate plan must be expressed in
financial terms.”
The description of finance can be applied to money management if the following three objectives
are properly noted: Many activities related to finance, such as saving, paying for goods, giving or
obtaining credit; No use of cash is required.
First, international trade is facilitated. The development of monetary units in different commercial
countries led to the international division of values. The monetary unit enables the precise direction
of capital to the most productive parts of the world.
Within any one country, the flow of capital from one region to another is similarly directed.
The term 'finance' refers to the financial system in a basic or conventional economy, that is, an
economy in which per capita output is low and declining over time. The economic institution in basic
finance is characterized by the lack of financial instruments of their own saving deficit units that can
provide and attract savings to them.
By offering different types of financial assets according to the different interests and preferences of
the investing public, there is no incentive for higher savings. Another characteristic of such an
economic system is that there are no markets in which firms can compete for private savings.
Finance – An Introduction
Functions of Finance
According to Paul G. Hasings, “finance” is the management of the
monetary affairs of a company. It includes determining what has to
be paid for and when, raising the money on the best terms available,
and devoting the available funds to the best uses. Kenneth Midgley
and Ronald Burns state: “Financing is the process of organising the
flow of funds so that a business can carry out its objectives in the
most efficient manner and meet its obligations as they fall due.”
Finance exploits the most out of all available rupees. Getting the best out of the available funds is
the main task of finance and the finance manager performs this task most effectively if he is to be
successful. In the words of Mr.A.L.Kingshott, “Finance is the common denominator for a vast
range of corporate objectives, and the major part of any corporate plan must be expressed in
financial terms.”
The description of finance can be applied to money management if the following three objectives
are properly noted: Many activities related to finance, such as saving, paying for goods, giving or
obtaining credit; No use of cash is required.
First, international trade is facilitated. The development of monetary units in different commercial
countries led to the international division of values. The monetary unit enables the precise direction
of capital to the most productive parts of the world.
Within any one country, the flow of capital from one region to another is similarly directed.
The term 'finance' refers to the financial system in a basic or conventional economy, that is, an
economy in which per capita output is low and declining over time. The economic institution in basic
finance is characterized by the lack of financial instruments of their own saving deficit units that can
provide and attract savings to them.
By offering different types of financial assets according to the different interests and preferences of
the investing public, there is no incentive for higher savings. Another characteristic of such an
economic system is that there are no markets in which firms can compete for private savings.
