TASKS OF FINANCIAL MANAGEMENT

Let us look at the important tasks of financial management as related to the central concerns noted above. The tasks of fmancial management may be categorised as follows:

A. Financial Analysis and Monitoring

Analysis of fmancial condition and performance. Financial forecasting and planning.

Financial control.

B. Financing

Identification of sources of finance and determination of financing mix.

Cultivating sources of funds and raising funds.

Disposition of profit between dividend and retained earnings.

C. Investing

Management of current assets (cash, marketable) Securities, receivables, and inventories.

Capital budgeting (Choice of hurdle rate and selection of capital budget).

Management of mergers, reorganisation and liquidation.

LIQUIDITY vs PROFITABILITY | MAXIMISATION OF RETURN | WEALTH MAXIMISATION | Constraints - Policy Decisions - Profitability | IMPLICATIONS OF WEALTH MAXIMISATION | Suppliers of Loan Capital | RELEVANCE OF WEALTH MAXIMISATION | Retaining earning and Undistributed profits | Managerial finance function | Functions of Financial Management | FINANCIAL FORECASTING | MANAGEMENT OF CORPORATION ASSET STRUCTURE | THE MANAGEMENT OF INCOME | MANAGEMENT OF CASH | DECIDING OUT NEW SOURCES OF FINANCE | CONTACT AND CARRY NEGOTIATIONS FOR NEW FINANCING | ANALYSIS AND APPRAISAL OF FINANCIAL PERFORMANCE | INCIDENTAL OR ROUTINE FUNCTIONS | CAPITAL BUDGETING DECISION | CURRENT ASSET MANAGEMENT | Maximisation of Share Value | RESPONSIBILITIES OF FINANCIAL MANAGEMENT IN THE FIRM | Functions of the Treasurer and Controller | TASKS OF FINANCIAL MANAGEMENT | CHALLENGES OF FINANCIAL MANAGEMENT | Gross and Net Savings | Household Savings | How to politely win when credit disputes and problems arise