The definitions of Financial Management in Business

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Financial management can be defined by: The management of the finances of a business/organization in order to achieve financial objectives. Taking a commercial business as the most common organizational structure the key objectives of financial management would be as follows:- Create wealth for the business. Generate cash and Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested. There are three keys elements to the process of financial management:- Financial planning Financial control and Financial decision making

FINANCIAL PLANNING:

Management need to ensure that enough funding is available at the right time to meet the needs of the business. In the short term funding may be needed to invest in equipment and stocks pay employees and fund sales made on credit.

FINANCIAL CONTROL:

Financial control is a critically important activity to help the business ensure that the business is meeting its objectives financial control addresses question such as:- Are assets being used efficiently? Are the businesses assets secure? Does management act in the best interest of shareholders and in accordance with business rules?

FINANCIAL DECISION MAKING:

The keys aspects of financial decision-making relate to investment, financing and dividends:- Investments must be financed in some way. However there are always financing alternatives that can be considered. For example it is possible to raise finance from selling new shares, borrowing from banks or taking credit from suppliers. If dividends are too high, the business may be starved of funding to reinvest in growing revenues and profit further.

KINGFISHER AIRLINES:

INTRODUCTION:

Kingfisher airline is one of the seven airlines to be ranked as a five-star airline by the independent research consultancy firm Skytrax. They operate more than 375 daily flights to 71 destinations, with regional and long-haul international services. In May 2009, they also carried more than a million passengers, giving it the highest market share among airlines in India. They also the sponsor of F1 racing outfit, which Vijay Malaya also owns. Kingfisher airlines serve 63 domestic destinations in 8 countries across Asia and Europe. Their short haul routes are mostly domestic apart from some cities in south Asia, Southeast Asia and western Asia. All short haul routes are operated on the airbus A320 family aircraft ATR 42S and ATR 72S are used mainly on domestic regional routes. They have its medium, long haul destination in East Asia, South Asia and Europe. Its first long haul destination was London, United Kingdom. This was launched in September 2008. It has plans to launch new long haul flights to cities in Africa, Asia, Europe, North America and Oceania with deliveries of new aircraft. All long haul routes are operated on the airbus 330-200.

DEPT. FINANCING FOR A MEDIUM SIZED FOR BOTH THE SHORT -TERM AND LONG -TERM:

SHORT TERM FINANCING:

Short-Term Financing referring to any investment, financial plan, or anything else lasting for one year or less.

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