Welcome to Scribd, the world's digital library. Read, publish, and share books and documents. See more
Download
Standard view
Full view
of .
Look up keyword
Like this
42Activity
0 of .
Results for:
No results containing your search query
P. 1
ICWAI Finance Related Discipline - Financial Management & International Finance study material download

ICWAI Finance Related Discipline - Financial Management & International Finance study material download

Ratings: (0)|Views: 2,354|Likes:
Published by successgurus
ICWAI Finance Related Discipline - Financial Management & International Finance study material download
ICWAI Finance Related Discipline - Financial Management & International Finance study material download

More info:

Published by: successgurus on Mar 25, 2010
Copyright:Attribution Non-commercial

Availability:

Read on Scribd mobile: iPhone, iPad and Android.
download as PDF, TXT or read online from Scribd
See more
See less

06/10/2013

pdf

text

original

 
1
Fianancial Management & international finance
Study Note - 1
OVER VIEW OF FINANCIAL MANAGEMENT
1.1 Finance Related Discipline 
This Section includes :
INTRODUCTION :
Finance is called “The science of money”. It studies the principles and the methods of obtain-ing control of money from those who have saved it, and of administering it by those intowhose control it passes. Finance is a branch of Economics till 1890. Economics is defined asstudy of the efficient use of scarce resources. The decisions made by business firm in produc-tion, marketing, finance and personnel matters form the subject matters of economics.Finance is the process of conversion of accumulated funds to productive use. It is so inter-mingled with other economic forces that there is difficulty in appreciating the role it plays.
MEANING AND DEFINITION OF FINANCE :
Howard and Uptron in his book introduction to
Business Finance
defined, “as that adminis-trative area or set of administrative function in an organization which relate with the arrange-ment of cash and credit so that the organization may have the means to carry out its objectivesas satisfactorily as possible”.
·
Meaning and Definition of Finance
·
Meaning and Definition of Financial Management
·
Finance and Related Disciplines
·
Economics
·
Accounting
·
Production
·
Marketing
·
Quantitative Methods
·
Costing
·
Law
·
Taxation
·
Treasury Management
·
Banking
·
Insurance
·
International Finance
·
Information Technology
http://success-gurus.blogspot.com
 
Fianancial Management & international finance
2
COST-VOLUME-PROFIT ANALYSIS
 
Over View of Financial Management
In simple terms finance is defined as the activity concerned with the planning, raising, control-ling and administering of the funds used in the business. Thus, finance is the activity con-cerned with the raising and administering of funds used in business.
MEANING AND DEFINITION OF FINANCIAL MANAGEMENT :
Financial management is managerial activity which is concerned with the planning and con-trolling of the firm’s financial resources.
Definitions
Howard and Uptron define financial management “as an application of general managerialprinciples to the area of financial decision-making”.Weston and Brighem define financial management “as an area of financial decision making,harmonizing individual motives and enterprise goal”.“Financial management is concerned with the efficient use of an important economic resource,namely capital funds” - Solomon Ezra & J. John Pringle.“Financial management is the operational activity of a business that is responsible for obtain-ing and effectively utilizing the funds necessary for efficient business operations”- J.L. Massie.“Financial Management is concerned with managerial decisions that result in the acquisitionand financing of long-term and short-term credits of the firm. As such it deals with the situa-tions that require selection of specific assets (or combination of assets), the selection of specificliability (or combination of liabilities) as well as the problem of size and growth of an enter-prise. The analysis of these decisions is based on the expected inflows and outflows of fundsand their effects upon managerial objectives”.- Phillippatus.
Nature of Financial Management
The nature of financial management refers to its relationship with related disciplines like eco-nomics and accounting and other subject matters.The area of financial management has undergone tremendous changes over time as regards itsscope and functions. The finance function assumes a lot of significance in the modern days inview of the increased size of business operations and the growing complexities associatedthereto.
FINANCE AND OTHER RELATED DISCIPLINES :
Financial management, is an integral part of the over all management, on other disciplines andfields of study like economics, accounting, production, marketing, personnel and quantitativemethods. The relationship of financial management with other fields of study is explained asunder:
http://success-gurus.blogspot.com
 
3
Fianancial Management & international finance
Finance and Other Disciplines
EconomicsCorporate FinanceResponsibilityCost AccountingFinancial AccountingBusiness FinanceTransactional AccountingAccountingManagement AccountingHuman Resource Accounting
Finance and Economics
Finance is a branch of economics. Economics deals with supply and demand, costs and prof-its, production and consumption and so on. The relevance of economics to financial manage-ment can be described in two broad areas of economics i.e., micro economics and macro eco-nomics.Micro economics deals with the economic decisions of individuals and firms. It concerns itself with the determination of optimal operating strategies of a business firm. These strategiesincludes profit maximization strategies, product pricing strategies, strategies for valuation of firm and assets etc. The basic principle of micro economics that applies in financial manage-ment is marginal analysis. Most of the financial decisions should be made taken into accountthe marginal revenue and marginal cost. So, every financial manager must be familiar withthe basic concepts of micro economics.Macro economics deals with the aggregates of the economy in which the firm operates. Macroeconomics is concerned with the institutional structure of the banking system, money andcapital markets, monetary, credit and fiscal policies etc. So, the financial manager must beaware of the broad economic environment and their impact on the decision making areas of the business firm.
Finance and Accounting
Accounting and finance are closely related. Accounting is an important input in financialdecision making process. Accounting is concerned with recording of business transactions. Itgenerates information relating to business transactions and reporting them to the concernedparties. The end product of accounting is financial statements namely profit and loss account, balance sheet and the statements of changes in financial position. The information containedin these statements assists the financial managers in evaluating the past performance and fu-ture direction of the firm (decisions) in meeting certain obligations like payment of taxes andso on. Thus, accounting and finance are closely related.
FINANCE
http://success-gurus.blogspot.com

Activity (42)

You've already reviewed this. Edit your review.
Saumitro Chakraborty added this note
wow what a beautiful note
1 thousand reads
1 hundred reads
Anelyn liked this
Anelyn liked this
Qi An liked this
Farok Mohd liked this
Santosh Singhal liked this
Santosh Singhal liked this
Sheena Ricafort liked this

You're Reading a Free Preview

Download
scribd
/*********** DO NOT ALTER ANYTHING BELOW THIS LINE ! ************/ var s_code=s.t();if(s_code)document.write(s_code)//-->