Tabulated below for easy reference are the classification of assets and the sources of finance Classification Of Assets Classification of Sources of Financing Divided into 2 types: Divided into 3 types Permanent Assets Expected to be held for more than a year Two types viz:- · Fixed asset … Read more
Some of the factors that can affect a firm’s working capital level are: Type/Nature Of Business Working capital level is generally higher in manufacturing based versus service base organizations Depends on the Volume of Sales The higher the sale, the higher is the level of working capital required … Read more
Financial Management is the efficient and effective planning and controlling of financial resources so as to maximize profitability and ensuring liquidity for an individual(called personal finance), government(called public finance) and for profit and non-profit organization/firm (called corporate or managerial finance). Generally, it involves balancing risks and profitability. The decision function of financial management can be … Read more
In the annual report of a listed entity, we sometimes see term like “ discontinued operation” and Contingencies This article explains the aforesaid terms DISCONTINUED OPERATION A discontinued operation is a component of an entity that either has been disposed of, or that is classified as held for sale and (a) Represents … Read more
We have looked at Mcgregor’s Theory X & Y and Maslow’s hierarchy of needs, next we move on to Herzberg’s Two Factor Theory.
From Herzberg’s research, he advocated a two-step approach to understanding employee motivation and satisfaction.[ His research involved the analysis of job attitudes of 200 accountants and engineers how they felt on the positive or negative sides at work and the reasons for so.
His two step approaches asked management to review:
Maslow’s Hierarchy Of Needs [ click on the image to enlarge it] According to Maslow, the above pyramid illustrates the needs of the workers. In brief, they are simply divided into the following factors: The PHYSICAL factor: · A person starts at the bottom of the hierarchy (pyramid) and will initially seek to satisfy … Read more
In a firm, top management would shower attractive performance schemes or incentives like commission, pensions, shares and share options, job rotation, job enrichment, job enlargement, piece rate, performance related ,etc to motivate the staff/workers. Motivating the staff is a very critical factor for the following reasons: 1 Resulting in higher output or productivity meaning … Read more
McGregor developed two theories of human behaviour at work: Theory and X and Theory Y. Both Theory X and Y are extreme behavior Two extreme theories Of Workers’ Work Behavior: Theory X Theory Y 1 – Individuals who dislike work and avoid it where possible – Consider effort at work … Read more
In financial management, included is treasury management which is all about the efficient management of liquidity and financial risk. Some of the major roles/functions of Treasury management are as follows: 1 Cash management The efficient collection and repayment of cash to both insiders and to third parties. 2 Currency management Manages the foreign currency risk, … Read more
Financial markets Relates to a place/meeting place/forums that facilitates the flow of funds amongst investors, firms, government units,etc. It facilitates the suppliers of loans, funds to those who require them. Basically, there are two types of financial markets: (1) Money Market Dealing with short-term securities that have a life of one year or less. These … Read more