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Sagot :
Budgeting, analysis of investment proposals, and provision of funds are activities associated with the finance function.
The activity of controlling and planning financial resources is known as financial function. It is a part of business in which obtaining and using the money required for effective operations is required.
Below are the objectives of finance functions.
- Investment decisions- It include employing revenues received from the sale of assets that become less profitable and productive in addition to allocating resources to long-term assets.
- Financial decision - Many different methods and routes can be used to obtain funds. In general, a proper ratio of equity to debt must be maintained. A company’s capital structure is defined as its ratio of equity to debt.
- Dividend decision - A financial manager's primary responsibility in a profitable situation is to choose whether to distribute all earnings to shareholders or keep all profits for themselves. This all comes under dividend decision.
- Liquidity decision - It's crucial to put enough money into current assets in order to maintain the trade-off between profitability and liquidity.
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