BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The total funds requirement of the firm
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The assets to be acquired
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The pattern of financing the assets
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All of the above
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Detailed explanation-1: -The modern approach to financial management view includes all of the following namely, the total funds requirement of the firm, the assets to be acquired and the pattern of financing the assets.
Detailed explanation-2: -The modern approach is an analytical way of looking into financial problems of the firm. According to this approach, the finance function covers both acquisition of funds as well as the allocation of funds to various uses.
Detailed explanation-3: -Financial Management is an activity inside an organization which is a process of controlling, organizing, planning, monitoring the financial resource. The Financial Management does plan its working process in all criteria to attain organizational growth by reaching objectives and goals.
Detailed explanation-4: -Working capital investment decisions are categorized into three approaches based on the organizational policy and risk-return trade-off, i.e., aggressive, conservative and hedging/moderate. Hedging approach is an ideal method of working capital financing with moderate risk and profitability.