| Management Learner

Origin of Finance

Finance is that managerial activity which is concerned with the planning to controlling of the firm’s financial Resources.Finance can be defined as the management of money which is medium of exchange.All individuals and institutions earn and spend money. Finance is the  process, institutions, Markets, instruments involved in gathering and disbursing   money among individuals, business and governments.

 Proper financial management will help any business

-Start a business and provide better products to its customers at lower prices.

-Pay higher salaries to its employees and still provide greater return to investors who put funds needed to operate the business.

Diagram of Finance

Diagram of Finance

-Enter new markets and control complex environment,develop and market new products

-maintain the life blood of the enterprise

-Achieve main goal

Function Of Fiance

1)Financial planning-Planning mostly connected with source of money and their utilization.

2)Identification of sources-To demonstrate the sources of money

3) Raising funds-Fund raising is an essential source of finance

4)Investment of Fund-Making decision where the fund will be invested

5)Protection of fund-It is a process of strategy to make sure that the fund will be utilized in a safe and secure way

6)Distribution of profit-Profit distribution is a vital Function of  finance.

7)Cash flow forecasting- Determining how the cash flow effect the total project

8)Financial controlling-To observe and monitoring the financial decision

  • shuvo

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