BUSINESS OF

FINANCE
FUNCTION OF FINANCE

Profit Maximization
One of the reasons a
company employs a
financial manager is to
maximize profit while
managing the finance of
the company.

A finance manager has to make

estimation with regards to capital
requirements of the company. This
will depend upon expected costs
and profits and future
programmes and policies of a
concern. Estimations have to be
made in an adequate manner
which increases earning capacity
of enterprise.

The Company’s Survival

The survival of the company is
essential. That is one of the reasons
the management considers hiring
financial managers in the first place.
The manager has to make adequate
financial decisions to ensure the
company is successful.

Proper Mobilization of Finance

Financial management also includes the
collecting of funds needed to run the business,
which the manager must properly manage.
After the management has determined the
amount required for a company procedure, he
or she can request the funds from any lawful
source, such as a debenture, shares, or even a
bank loan. The point is that there should be a
healthy balance between the amount of money
that the company has and the amount that it
has to borrow.

Proper Coordination

There must be a proper
understanding and corporation
among the various departments.
The finance department must
understand and agree with other
departments within the company
for the business to function
smoothly.

MORE LUISA L. STA.ANA MRS. EVANGELINE SAMALA

12-INCOME