Financial control addresses questions such as: • Are assets being used efficiently? and does not give attention to everyday business operations. After deciding about the quantum of funds required it should be decided which type of securities should be raised. Generally, financial statements are prepared in order to disclose the financial position of business concerns at a point of time and also operating results during the period under review. Proper Use of Surpluses: The uitlisation of profits or surpluses is also an important factor in financial management. According to Guthman and Dougal, financial management means, “the activity concerned with the planning, raising, controlling and administering of funds used in the business.” It is concerned with the procurement and utilisation of funds in the proper manner. It will be better if Cash Flow Statement is regularly prepared so that one is able to find out various sources and applications. The three critical decisions taken under this approach are. The report concludes that in order to stem the rising cost of natural disasters globally, hazard risk management concerns need to be integrated into longer-term national investment policies and development strategies and appropriately reflected in the allocation of financial resources, including medium-term financial planning. Operating gearing- If fixed costs are a high proportion of total costs then cash flows will be volatile; so high gearing is not sensible. Disclaimer 8. The interested parties of the financial statements are thinking that the values shown in the financial statements to be real and absolute. This article throws light upon the top seven features of financial management. In the case of dividend decision, the finance manager is the who is responsible for the accord that is taken by him or her; regarding the net profit distribution (NPD). Though he was not accountable for the effective utilization of funds, however, his responsibility was to get the required funds from external partners on a fair term. Terms of Service 7. Recognizing the requisites of capital (funds) and picking up the sources for that capital. 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Security- If unable to offer security then debt will be difficult and expensive to obtain. The estimations should be based on sound financial principles so that neither there are inadequate nor excess funds with the concern. In the short term, funding may be needed to invest in equipment and stocks, pay employees and fund sales made on credit. A proper idea on sources of cash inflow may also enable to assess the utility of various sources. The traditional approach only emphasized on the fund’s procurement only by corporations. It may be wise to finance fixed assets through long-term debts. To put it in other words, it is applying general management standards to the financial resources of the firm. If cost of raising funds is very high then such sources may not be useful for long. A judicious use of surpluses is essential for expansion and diversification plans and also in protecting the interests of shareholders.