Scope Of Financial Management | MBA in Business Analytics in Bangalore

Posted by Bansh Bahadur On 28/01/2023 09:06:42

The main objective of financial management is to arrange sufficient finance for meeting short-term and long-term needs. A financial manager will have to concentrate on the following areas of the finance function. mba institutes in bangalore

1. Estimating financial requirements:
The first task of a financial manager is to estimate the short-term and long-term financial requirements of his business. The amount required for purchasing fixed assets as well as the need for working capital will have to be ascertained. mba bangalore

2. Deciding capital structure:
Capital structure refers to the kind and proportion of different securities for raising funds. After deciding the quantum of funds required it should be decided which type of securities should be raised. A decision about various sources for funds should be linked to the cost of raising funds. Top Ranked MBA college in Bangalore

3. Selecting a source of finance:
An appropriate source of finance is selected after preparing a capital structure which includes share capital, debentures, financial institutions, public deposits, etc. If finance is needed for short-term periods then banks, public deposits, and financial institutions may be appropriate. On the other hand, if long-term finance is required then share capital and debentures may be useful.

4. Selecting a pattern of investment:
When funds have been procured then a decision about investment pattern is to be taken. A decision will have to be taken as to which assets are to be purchased. The funds will have to be spent first on fixed assets and then an appropriate portion will be retained for working capital and for other requirements. MBA College in bangalore with Business Analytics 

5. Proper cash management:
Cash management is an important task of a finance manager. He has to assess various cash needs at different times and then make arrangements for arranging cash. Cash may be required to purchase of raw materials, make payments to creditors, meet wage
bills and meet day-to-day expenses. The idle cash with the business will mean that it is not properly used. mba programs in bangalore

6. Implementing financial controls:
An efficient system of financial management necessitates the use of various control devices. They are ROI, break-even analysis, cost control, ratio analysis, and cost, and internal audit. ROI is the best control device in order to evaluate the performance of various financial policies. top mba colleges in bangalore

7. Proper use of surpluses:
The utilization of profits or surpluses is also an important factor in financial management. A judicious use of surpluses is essential for expansion and diversification plans and also for protecting the interests of shareholders. A balance should be struck in using funds for paying dividend and retaining earnings for financing expansion plans. list of mba colleges in bangalore with contact details

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