Basic Financial Management

Finance is undoubtedly the most basic and most important function in any business activity. The success of business depends upon the success of finance function. From academic point of view, finance is the most technical subject, having a very wide scope and having constantly changing rules and regulations. As such, a normal student attempts to keep himself away from the subject and this aggravates the problems for him. One cannot afford to ignore the subject of finance. The ultimate evaluation of any business activity is the profit-based evaluation and the term profit itself is a financial phenomenon. As such, one needs to get acquainted with the basic principles of finance, despite the hardships involved in the process. CONTENTS - 1. Introduction 2. Forms of Business Organisation 3. Financial Statements 4. Ratio Analysis 5. Funds Flow / Cash Flow Statement 6. Financial Plan and Capitalisation 7. Sources of Long-term and Medium-term Finance 8. Capital Structure 9. Working Capital Management 10. Management of Inventory 11. Management of Receivables 12. Management of Cash 13. Capital Budgeting 14. Management of Earnings