The Finance Function in Business
Whether you wish to invest in a company or start our own business, it is important to know about financial issues and we give due importance to good financial management of the business.
At the end of the decade of the 50′s when it really starts the analytical study of finance, previously the finance function of a company had as its main responsibility the pursuit of financial resources. This has been the traditional concept of finance.
In modern financial management must provide the appropriate analytical tools to respond to various factors, including these:
1. What are the specific assets to be acquired by a company?
2. What total assets must have a business?
3. How to finance capital needs?
These 3 issues are closely linked. The total volume of assets will depend on specific investment opportunities, as well as funding opportunities. Facilities to obtain financial resources depend, in turn, the quantity and quality of investment projects that will be used. The 3 elements are 3 aspects of the same problem and it must be solved in practice simultaneously.
Finally, it is important to know that the modern aspects including financial management are:
1. Financial analysis.
2. The supply of capital.
3. The reasoning of capital or investment selection.
4. The study of the cost of capital.
5. The analysis of the financial structure.
6. The dividend policy.
7. The financial plan.
As we see, the modern financial management involves several points we must take into account when considering the health of a business in which we should invest the time or worrying about the financial health of our company. The optimum is to have a person that we aces
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