The global financial events have emphasized the need for an understanding of financial management, investment decision-making and strategies used in financial and investment management. We provide a comprehensive over view finance. We take the readers who may have little or no familiarity with finance, to a level of understanding that gives the reader a better appreciation for the complex financial issues that companies and investors face today.
Additional Info
  • Publisher: Laxmi Publications
  • Language: English
  • ISBN : 978-93-81159-36-1
  • Chapter 1

    Finance and Business Development Price 2.99  |  2.99 Rewards Points

    Finance is one of the most important business function but in recent times due to various developments such as increasing number of business units and their scales of operation, changing structure of economy, globalization of economy, rising price levels, and the increasing importance of the government in its use of financial resources, the finance as a business function, is gaining an importance and a distinctive status. In the initial stage, the accounting f
  • Chapter 2

    Long-term Finance and Capital Struc ture Price 2.99  |  2.99 Rewards Points

    Along with a carefully prepared feasibility study, the method of financing and operation is one of the key areas in determining the viability of a new hotel project. We have chosen to link the method of operation, in the sense of financial arrangements, with that of financing, as this may influence both the level of risk and the prospective profitability.
  • Chapter 3

    Analysis of Financial Statements Price 2.99  |  2.99 Rewards Points

    The best use of financial statements is their proper analysis, understanding the contents and use in the decision making process for the managements.
  • Chapter 4

    Fund Flow Statements and Cash Flow Statements Price 2.99  |  2.99 Rewards Points

    Most of the business firms whether big or small do prepare the financial statements namely income statement (to know the profit or loss) and balance sheet (to ascertain the financial position) at the year end. Although these financial statements provide very useful information on various aspects such as growth pattern, current status of the firm, yet they do not answer an important question concerning where from the firm received funds and how the firm spent those. For example, it is heard from a business man that, “I have no cash even though my profit and loss account shows a profit of ` 2,00,000.” Thus, the two statements (income statements and balance sheet) do not reveal causes of changes in assets and liabilities of a firm as given in the two consecutive balance sheets! A Funds flow statement answers these questions. This is the reason why most of the modern enterprises prepare a Funds Flow Statement over and above the other legally required Financial Statements.
  • Chapter 5

    Working Capital Management Price 2.99  |  2.99 Rewards Points

    The term ‘working capital’ refers to a firm’s investment in short-term assets, short-term securities, accounts receivables and investment. Thus, it refers to the firm’s current or circulating assets. Current assets have been defined as assets that are usually converted into cash within the current accounting year. They are therefore cash or near cash resources.
  • Chapter 6

    Investment Decisions Price 2.99  |  2.99 Rewards Points

    One of the most important, characteristic of investment in any industry is the considerable amount of capital involved. This is the principal factor in any examination of the financial feasibility of a project, subsequent to completion of the market feasibility study. Decisions about the capitalization of the project are absolutely critical to its survival. Examples of over-capitalisation in a project indicate that this is by no means a simple proposition though it is very much at the heart of project planning. There are too many instances where, given the capital cost, the physical design of the facilities, and the prevailing market conditions, the project cannot be viable, however expert or skilful the management responsible for their operation.
  • Chapter 7

    Profit Planning and Dividend Decision Price 2.99  |  2.99 Rewards Points

    Cost volume profit analysis is an effective tool in the hands of management to analyse and study the relationship between volume, cost, prices and profit. It is a device used to find out the profitability at different levels of activity.
  • Chapter 8

    Investment Apprai sals Price 2.99  |  2.99 Rewards Points

    The tools required for investment appraisals are: (a) financial models, and (b) break-even analyses. It is not really useful to discuss investment appraisal without first considering the tools needed for the job.
  • Chapter 9

    Budgeting Price 2.99  |  2.99 Rewards Points

    Budgets are used as an important tool for financial planning and control. The main idea is to compare the actual performance with the budgeted one with a view to judge the level of achievement. Operationally speaking, budgets are annual financial plans prepared to achieve organization’s objectives. It is in fact the final process in the comprehensive planning network. In the connection MacAlpine observes: “ ‘Annual’ budget is the tip of the iceberg that has to be supported by stragetic planning in depth and operational planning. It is a function of the top management and unless this is recognised, a company would be denied the full benefits of budgeting procedure. Budgeting embraces every aspect of a business and every section of an organization.”

About the Author