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Financial Management
What is the primary objective of 'Financial Management’?
Financial management is concerned with the procurement and utilisation of funds in a proper manner so as to accomplish the objectives of the organization.
Its primary objectives include:
a) Maintenance of adequate liquid assets and
b) Profit maximization of the organisation
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Explain briefly the factors affecting the investment decision.
Explain, in brief, any five factors that should be taken into consideration while determining the long-term dividend policy.
Or
Explain factors affecting the dividend policy of a company.
“Determining the relative proportion of various types of funds depends upon various factors”. Explain any five such factors.
Or
“Determining the overall cost of capital and the financial risk of the enterprise depends upon various factors”. Explain any five such factors.
Investment decision can be long-term or short-term. Explain long-term investment decision and state any two factors affecting this decision.
Identify the financial decision which determines the amount of profit earned to be distributed and to be retained in the business. Explain any four factors affecting this decision.
Explain, in brief, any three decisions involved in financial management.
What is meant by investment decision?
From the point of view of ‘Floatation costs’ which source of finance is most appropriate?
From the point of view of ‘Control’ which source of finance should be avoided?
How the ‘Stability of Earning’ affects the dividend decision?
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