Money Management Essay

Financial Management Answer Essay
National Institute of Business Management
Chennai – 020
FIRST SEMESTER EMBA/ MBA
Subject : Financial Management
Attend any 4 questions. Each question carries 25 marks
(Each answer should be of minimum 2 pages / of 300 words)
1. What are the significant factors of Financial Statements? Discuss the various tools of financial
Analysis. (Answered)
2. What is a Fund Flow Statement? Discuss the uses and preparation of Fund Flow Statements.
(Answered)
3. What is financial Forecasting? Explain. (Answered)
4. Examine the various tools of Financial Analysis. (Answered)
5. What is Zero Base Budgeting? Explain.
6. Describe the various aspects of Zero Based Budgeting with its merits and demerits.
25 x 4=100 marks
ANSWER SHEET
1. What are the...show more content...
For periodic reporting purposes, accrual performance numbers nearly always differ from cash flow
numbers. This creates a demand for periodic reporting on both income and cash flows. The
statement of cash flows details the cash inflows and outflows related to a company's operating,
investing, and financing activities over a period of time.
Statement of Shareholders' Equity. The statement of shareholders' equity reports changes in the
component accounts comprising equity. The statement is useful in identifying the reasons for
changes in owners' claims on the assets of the company. In addition, accepted practice excludes
certain gains and losses from net income which, instead, are directly reported in the statement of
shareholders' equity.
Financial analysis tools include the following:
a.Comparative financial statements i. Year–to–year change analysis ii. Index–number trend analysis
b.Common–size financial statements
c. Ratio analysis
d. Cash flow analysis
Comparative analysis focuses on exceptions and variations and helps the analyst to formulate

judgments about data that may be interpreted in various ways. In short, the usefulness of
comparative analysis is the notion that a number is more meaningfully interpreted when it is
evaluated relative to a comparable quantity. A comparison, to be meaningful and fair, must be made
between data, which are prepared on a similar basis. If data are not directly
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What is Management? Essay
Essay 1: What is Management?
The purpose of this paper is to analyze the role and function of management in society and the
workforce and to look into how it is implemented. Three main questions will be discussed, outlining,
"What is management? aWhat do managers do? And what skills do managers need?" We will define
management as a profession, look into what managers undertake and deliver in their daily output of
work, different levels of management, and what skills managers need in order to produce the desired
beneficial outcome for their organization.
What is Management?
To begin with lets look at management through the last 30 years. In 1980 management was defined
by Dale S. Beach, The management of people at work (1980, p5), as 'The...show more content...
It could be said that the idea of having both of these methods is both ineffective and inefficient as
they clash on how a manager should go about his/her job, but Mintzberg's model is a more in depth
version of Fayol's model, that takes into consideration the wide variety of daily activities a manager
must perform, not just a basic input/output/review scheme. A Study from the University of Nebraska
by Fred Luthans challenges both Fayol's and Mitzberg's models and puts forward a new concept.
This concept being that there are 4 main roles a manager must undertake, those being
Communication, Traditional management, human resource management and networking (Luthans,
1988). Looking at all three of these models we can depict some similarities; that being that all
models include the basic premise of planning, organizing and implementing, leading and
motivating subordinates and then reviewing progress of both the project as a whole and employee
output and work satisfaction. Depending on a manager's responsibilities held, there are different
levels of management; top manager, middle manager and first level (front line) manager. In
relation to what each of these levels of manager do, front line managers will automatically be more
involved in leading and motivating as their main purpose is to supervise and make sure the job is
being done. Middle managers will be heavily involved in organizing and implementing as they will
delegate to the front line managers what must be done

Financial Management Essay examples
Financial Management Introduction ============ Every organization, irrespective of its size or
ownership pattern, has to manage its finances. The overall objectives of an organization cannot be
achieved in the absence of financial management. Many organizations fail in their objectives because
of financial mismanagement and this failure rate is quite high among the small business enterprises.
Hence, financial management is vital for all types of organizations, profit making as well as
non–profit making. In case of non–profit making organizations also the effectiveness and
performance depends on their financial resources management. Financial Management
====================...show more content...
3. Managerial Accounting deals with procuring of data for the organisation's management i.e. to
serve the internal users with necessary accounting information to carry out the management tasks of
planning, organising, actualising and controlling. " Management Accounting is the presentation of
accounting Information in such a way as to assist management in creation of policy and in the day to
day operations of an undertaking". 4. Financial Management deals with the process adopted by an
organisation for taking financial decisions through analysing and interpretation of financial data for
meeting the organisations objectives. Hence, the tasks involved in Financial Management include:
Г Analysing financial needs Г Forecasting financial needs Г Managing working capital Г
Planning capital structures Г Organising financial operations Г Monitoring and controlling
finances etc. In fact raising funds and allocating funds for business are the two prime financial
management tasks. Financial Planning Financial planning is an appraisal of those financial aspects
that may or are likely too occur in future but need immediate decision making. It involves setting
financial objectives in terms of profits, sales or acquistion of assets along with financial foorecasting
for the organisation. This includes estimation in the areas of: Г

Essay On Money Market
Emerging Economies Selected: India and China
Money Market
1.India
It is a market where short–term funds with maturity ranging from overnight to one year in India
which are close substitutes of money even the financial instruments. It had diversified from
conventional platform of treasury bills and call money to commercial paper, certificates of deposit,
repos, forward rate agreements and most recently interest rate swaps.
"The money market fulfils the borrowing and investment requirements of providers and users of
short–term funds, and balances the demand for and supply of short–term funds by providing an
equilibrium mechanism" (Money Market in India, 2017). It serves as a mechanism through which
central bank's intervention in the...show more content...
Commercial Paper
"It is an unsecured, short–term debt instrument issued by a corporation, typically for the financing of
accounts receivable, inventories and meeting short–term liabilities." Maturities on commercial paper
is usually below one year. It's issued at a discount from face value and shows market interest rates.
It has collateral and so it is unsecured. It is usually issued by firms which have high credit rating.
India
It was introduced in India in 1990 and it is issued in the form of promissory note. "It was
introduced in India with a view to enabling highly rated corporate borrowers to diversify their
sources of short–term borrowings and to provide an additional instrument to investors" (Singhania,
Singh, & Prajapat, 2016). "Subsequently, primary dealers and all–India financial institutions were
also permitted to issue CP to enable them to meet their short–term funding requirements for their
operations" (Singhania, Singh, & Prajapat, 2016).
China
"In an effort to promote the direct funding of corporations, improve the liquidity of the shortened of
the interest rate market and foster a more responsive pricing of credit risk, in May 2005 the PBoC
allowed non–financial firms to issue commercial paper (CP)" ("BRICs and Beyond", 2007). At
End–September 2006, this segment of the market was already worth ($33bn, or 1.3% of GDP),
representing just over half of all non–bank corporate interest–bearing liabilities and nearly 5% of the
total market.

Management Essay
We live and work in a condition with challenging opportunities and dramatic uncertain economic
environment, especially for managers, must have enough skills and knowledge to manage the
changeable business environment. This essay will discuss whether the managers nowadays have the
tendency to focus on economic results at the expense of more important things or not, and yes, the
managers have the tendency to focus on the expense of more important things, the discussion will be
demonstrated from the following concepts: contemporary management challenges–downsizing,
workplace diversity, restructuring, globalisation and quality; organisational culture in Australia,
managers' role in managing organisational culture. Managers today must be able...show more
content...
Quality means the total features and characteristics of a product or service that has effects upon its
ability to satisfy stated or implied needs (Davidson et al. 2006). All the challenges that managers
need to face to are mentioned and defined above, the analysis of the relevance of these challenges
and economic results will be addressed in the next paragraph.
All profit–orientated organisations are focus on strategies to measure the value they produced in
financial terms. In that case, managers need to provide strategies and action plans to achieve
organizational goals, encourage efficient employees, reward good performance, and support risk and
creativity to achieve higher profits (Thach & Thompson 2007). Moreover, satisfy the customer needs
is very important, because their purchasing activities can bring the profit (Thach & Thompson 2007).
Financial performance not only can show whether the business gain or loss money, if gain more
money means the business running well and is successful on financial terms, but also is an
important measurement when evaluating the abilities of the manager. Although financial
performance is important for the organisation, managers should not only focus on it, should also
focus on the

Managing Personal Finances Essay
Managing Personal Finances
Managing personal finances is an important skill to acquire. However, no where in school is this
subject taught. As a result of a lack of preparation, our society is subject to a high percentage of
people who lack financial success. Those who are successful at managing their personal finances
will find that they are successful in many other areas as well. To learn how to manage personal
finances there are books and web sites that provide a step by step guide to successfully managing
personal finances. Those who lack financial success often possess many of the same traits.
The first reason most people lack financial success is because they lack knowledge, or better yet, a
desire to gain knowledge....show more content...
This is similar to goal setting in respect to that one must dream to make a dream come true.
A big mistake commonly made by the financial failures is conforming. Listen to the advice of
mother's: "If so and so jumped off a cliff would you?" Don't do what everyone else is doing; dare
to be different! Don't be afraid to take calculated risks. This does not mean that you can actually
jump off of a cliff, because that would be a foolish risk, this means again to foresee the results and
consequences of your actions. The successful people in society are the ones who don't do the same
thing as everyone else. For example, look at the modern art. This type of art is so profitable
because it is so different from any other art created.
It is also important to beware of credit. Don't borrow excessively, because it will soon become
debt, which has interest and other consequences. Instead, set a budget and stick to it firmly!
Attitude is also an issue in financial success. If a person has a poor attitude, he will only get what
he deserves! If the worst is expected, the worst will happen. It all comes down to the power of one's
mind. Think positively! When setting goals, focus on the positive aspects, and don't include any
negative words. Everything can be rephrased to be positive. Successful people are optimists! In
order to be an optimist, only associate with optimists. The

Money Is Not Everything
Money isn't everything ... or is it? A preliminary research study into money as a motivator in the
licensed house sector
Karen Meudell Department of Business and Management, University of Portsmouth, Southsea, UK
Karen Rodham School of Management Studies for the Service Sector, University of Surrey,
Guildford, UK
The aims of this paper are to consider the role of money as a motivator for managers and staff in the
licensed house sector of the hospitality industry and to consider the implications of the п¬Ѓndings
from both an academic and an industry viewpoint. As part of a one–day training event, a pilot study
was undertaken with 57 managers and employees of an independent public house operator in an
attempt to establish what makes people...show more content...
220). Thus far the money/motivation/performance argument can be considered to be bipolar:
money does or does not motivate. However, there is a case to be made for a contingency view,
individual motivation is dependent on a wide variety of variables which could include age, gender,
career stage, socioeconomic circumstances and even national culture: Furnham et al. (1994)
reported that acquisitiveness for money was ranked higher by young people in the Far and Middle
East while work ethic and mastery were ranked higher in North and South America. "The search for
a generalized theory of motivation at work appears a vain quest. A major determinant of behaviour is
the particular situation in which individual workers п¬Ѓnd themselves ... motivation varies over
time and according to circumstances" (Mullins, 1993, p. 449). Kovach (1987) also challenged the
notion that everyone considers pay and promotion important; his research study looked at 1,000
employees and asked them to rank order ten work–related factors. Although there was considerable
similarity in preferences between men and women, there were distinct differences in terms of age,
income level and level in the organization: younger workers with low

Budgeting Essay
Budget
Budget is the major financial and economic statement. The role of the budget is to keep track of the
money coming in and the money going out. It is essential part of running any business effectively. It
can help make a short and long term projections about financial situation, avert a financial crisis and
plan for major financial changes.
The company has to be able judge its spending performance. Does not matter what type of company
it is, the ability to measure performance using budgets is an important process in any business
organisation. Planning helps to understand where business is at present and where it is going to be
in the future. Company's planning process has to involve different developing objectives and prepare
...show more content...
Another advantage is control and evaluation. It helps to think about how to correct company's
problems, if they have them. Motivation is another important advantage. Budget can motivate to
reach the goals. It also can force managers to think and plan for the future. Budgeting helps to ensure
that everyone in the organisation is pulling in the same direction. The budgeting process provides a
means of allocating resources to those parts of the organisation where they can be used most
effectively.
A budget can be disadvantageous also. There is judgment and subjectivity in the budgeting process.
It does not consider quality and customer service. Budgets can be seen as pressure devices imposed
by management, thus resulting in: bad labour relations. Budget could results departmental conflict
arises due to disputes over resource allocation, and departments blaming each other if targets are not
attained. It is difficult to reconcile personal and corporate goals
In conclusion, every major company in the world uses budgeting and there is a good reason for
that. It is an important component of financial success. Budgeting makes easier to achieve financial
goals. It keeps track of all expenses and help to avoid crisis. It also helps companies to control their
growth and provide them with realistic idea where business is going.

Money Management Essay

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