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Financial Management
Explain the role of ‘Operating Efficiency’ in determining the amount of working capital.
Operating efficiency means completing the various business operations efficiently. Operating efficiency of every organisation happens to be different. Some such examples are: (i) Converting raw material into finished goods at the earliest, (ii) Selling the finished goods quickly, and (iii) Quickly getting payments from the debtors. A company which has a better operating efficiency has to invest less in stock and the debtors. Therefore, it requires less working capital, while the case is different in respect of companies with less operating efficiency.
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‘Wealth Maximisation’ is an important objective of financial management. Explain briefly.
What are the main objectives of financial management? Briefly explain.
Or
State the primary objective of financial management.
How the wealth of shareholders can be computed?
What is meant by Financial Management?
Every manager has to take three major decisions while performing the finance function. Explain them.
Explain any six factors affecting the financing decision of a company.
Explain any six factors affecting the dividend decision of a company.
What is meant by Dividend decision? State any four factors affecting the Dividend decision.
What is meant by Financing decision? State any four factors affecting the financing decision.
Explain briefly the factors affecting the investment decision.
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