Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Finance Function
Managing the Finance
Function
What Finance Function is ?
1. Cash sales
2. Collection of Accounts Recievables
3. Loans and Credits
4. Sales Of assets
5. Ownership Contributions
6. Advances from customers
Managing the Finance
Function
Short term funds
- are those repayment schedules with less than 1 year.
Supplies of short term funds
1. trade creditors
2. commercial banks
3. commercial paper houses
4. finance companies
5. factors and insurance companies
Managing the Finance
Function
Long term sources of funds
- it has to tap long sources funds (necessary)
2. common stocks
3. retained earnings
Managing the Finance
Function
The best source of financing :
As to Schall and Haley recommends, factors to be
considered are :
A. Flexibility
B. Risk
C. Income
D. Control
E. Timing
F. collateral values, floatation costs, speed, exposure
Managing the Finance
Function
Risk Management and Insurance
- risk is a very important concept that everybody must
be familiar with, risk refers to the uncertain loss or injury
Examples :
Ex. Theft
Risk Management
- is an organized strategy for protecting and conserving assets and people
o Long term
Determination
o
Of
o
Funds (process Flow)
Requirements
effective
Procurement
And efficient use
Of funds