BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Safe custody of funds only
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Expenditure of funds only
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Procurement of finance only
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Procurement & effective use of funds
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Detailed explanation-1: -The finance function in business refers to the functions intended to acquire and manage financial resources to generate profit. It produces relevant financial resources and information contributing to the productivity of other business functions, planning, and decision-making activities.
Detailed explanation-2: -Finance is responsible for setting the budgets and creating spend and revenue reports, and procurement is responsible for sticking to those budgets, as well as making sure the items purchased have been received and paid for by finance. The two should align on KPIs to make the most of their collaboration.
Detailed explanation-3: -Finance Functions-Investment Decision, Financial Decision, Dividend Decision and Liquidity Decision.
Detailed explanation-4: -There are two main purposes of the finance function: to provide the financial information that other business functions require to operate effectively and efficiently. to support business planning and decision-making.