Principle of financial management

   

Added on  2023-01-13

27 Pages1747 Words79 Views
PRINCIPLE OF FINANCIAL
MANAGEMENT
Principle of financial management_1
TABLE OF CONTENT
INTRODUCTION
TASK 1
CONCLUSION
REFERENCES
Principle of financial management_2
INTRODUCTION
Financial management deals with management of financial resources in the best
possible manner. It refers to allocating the financial resources of company to the most
productive operations.
Present study is about the financial decision-making and its importance for the
business enterprise. The research is based on Persimmon plc that is a real estate
company. The report will cover the decision making approaches, techniques and factors
influencing.
This will also cover the stakeholder management and cost accounting for minimizing the
costs. Study provides and understanding about information essential for strategic and
operational decisions.
This covers the investment appraisal techniques in in decision-making and the financial
decision for long term sustainability of business enterprise
Principle of financial management_3
Approaches and techniques contributing
to effective decision making.
Formal Approach
It is the approach comprising of structures, systems and
processes which helps management in decision-making. In
this approach step by step format is followed by
organization for the purpose of making acceptable and
viable decisions.
The structure defines the information that defines the
alternatives. It is used by organizations for formalizing the
relationship among the staff and processes of company.
Principle of financial management_4
Informal Approach
This could be defined as approach consisting of unwritten
rules, networks and the relationship building for decision
making purposes.
There should be a strong relationship between the senior
and lower level management for getting correct and
reliable data and information's from all the departments
on which the decisions of management will be based.
Principle of financial management_5
Principle of financial management_6

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