Part of financial management scope:
We can classify the scope into the following main parts:
A. Financial Management in New Companies:
A new company spends big amount on marketing and production but it must ignore appropriate use of its fund. Financial management’s entrance is new company and when new company avoids financial management study, it means it is avoiding cash, inventory, debtors and fixed assets management. Prior study reveals that big organization or associations did not trade even one year and prior to one year they took their baggage and became liquidated. Why? As, specified debt was demanded from such companies by the creditors. By responding no, court had liquidated them. Therefore, when you are starting a new company, turn into customary readers of the financial management.B. Financial Management in Old Companies:
Old company can stay alive in long run, if it is able to pay debt timely, to give salary on time and to pay other daily expenditures. Since old company has good reputation in financial market, thus financial management’s some portion like working capital management is very noteworthy. Old company must try to raise growth rate by employing new methods of financial management.C. Financial Management in NGO:
In this material age, each and every work is becoming business. Only NGO are working not for earnings aim. Its aim is not to make money although here is as well question of its existence. Similar to survive of company, NGO can live only and only subsequent to proper management of its cost and management of cost can be taught only in financial management. Therefore, NGO are as well under the scope of financial management. All NGO wants to give free services long time. Devoid of, use the method of financial management, NGO begins misuse the scarce sources of public. Subsequent to revealing this fact, public might decrease to donate to NGO, Therefore NGO must be aware about financial management.
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