TYPE OF FINANCE

Finance Group

Short term

Middle term

long term

Four type of finance Self Financing:-Fund from private and family sources

Debt Financing:- Borrowing money from others.

Equity Financing:-By sale of an interest in the business.
Other

Financing:-Other sources such as Trusts and Grants.

PURPOSE OF FINANACE
Start a new business. Buy a business. To buy asset such as plant and equipments. For working capital.

To raise capital that can be return to share holder or

to the owner. To arrange fund to buy out a partner or a share holder.

HIERARCHY OF FINANCE
CEO CFO DIRECTOR OF FINANCE -----------------------------------------------------------------MANAGER ACCOUNT A.MANANGER EXECUTIVE ACCONTENT MANAGEMENT TRAINEE MANAGER TAXATION A.MANANGER EXECUTIVE ACCONTENT MANAGEMENT TRAINEE MANAGER FINANCE A.MANANGER EXECUTIVE ACCONTENT MANAGEMENT TRAINEE MANAGER PAYROLL A.MANANGER EXECUTIVE ACCONTENT MANAGEMENT TRAINEE

Career Opportunities in Finance

Corporate Finance Functions

External Financing Capital Budgeting

Corporate Finance Functions

Financial Management

Corporate Governance

Risk Management
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The Financial Management Function

Managing firms internal cash flows,

and its mix of debt and equity financing,

to maximize the value of the debt and equity

claims on firms, and to ensure that companies can pay off their obligations when they come due.
Involves obtaining seasonal financing, managing inventories, paying suppliers, collecting from customers, and investing surplus cash

The Risk Management Function

Managing firms exposures to all types of risk,

both insurable (such as loss caused by fire or

flood) and uninsurable, in order to maintain optimum risk-return trade-offs and thereby maximize shareholder value. Modern risk management focuses on adverse interest rate movements, commodity price changes, and currency value fluctuations.

The Capital Budgeting Function

Capital Budgeting selecting the best projects in which to invest the resources of the firm, based on each projects perceived risk and expected return.

Select investments for which the marginal benefits exceed the marginal costs.

The Scope of Corporate Finance

Financial managers should seek to maximize

shareholders wealth. How? By performing the five basic duties of corporate finance: External financing, capital budgeting, financial management, risk management, corporate governance. Select investments for which the marginal benefits exceed the marginal costs. Port Folio Management. Studying various aspect of accounting terminology.

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Limitation of finance department in an organizationion

Problem of accuracy : Rigidity and inflexibility in administration: External constraints: Always base on assumption : High concentration of authorities:

Could not take independent decisions:

Not every time have an ability to tackle emergency

situations: More concentration requires Problem in allocation of finance

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COMPETENCIES
Accuracy

Monitors accuracy of own transactions Records transactions accurately Maintains accurate records Recognizes and corrects errors Cash Handling Complies with established procedures Maintains accurate cash flow records Resolves cash discrepancies Monitors access to funds Audits funds
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Summary
As the speculation of industry professionals go, its definitely going to be an upswing for the finance sector. At present, the finance sector is getting transformed into a technology-intensive and customer-friendly model with a focus on convenience. The role of an integrated financial infrastructure is to stimulate and sustain economic growth. Finance will have a significant contribution in propelling India forward as a global economic power.

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