the management of a firm’s finances is extremely important to its success. Your
ID: 2747189 • Letter: T
Question
the management of a firm’s finances is extremely important to its success. Your firm may bring in $1B in sales but if the firm is mismanaged, it may suffer a net operating loss (a net income of less than $0). What is financial management and why is it so important to the success of a business? Businesses require funding to operate and grow and there are several method by which they can obtain capital. As a business owner; describe how your financing needs (both short and long term) might change as your company expands and identify various funding options as your company grows from a small business to a large global firm.
Explanation / Answer
What is financial management
Answer :It refers to managing monetary or monies or funds with an aim and goal of meeting an organziation objective
Importance of Financial Management
Wether you think about expanding your current business--by adding a retail location, expanding your product offering, or changing the direction of your business model--that could mean your business is currently in great shape, both financially and with your customer base.Finance is the blood of business and the requirement of finance is as dynamic as the the business grow.
financing needs change with time and ,one need to look into various factors to determine short and long term finance
Various funding options available to expand are as follows :
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