Free Essay: What are factors that causes financial problem of a students And what are the effects of it? Tuition and Fees College tuition and fees are large. Scholarship Essay financial problems essay Contests. The easy problems have been solved. · Here's a full essay that I wrote with my students about the topic below. I think your best bet would be to start or join. #fb. We Have The Ability to Write any Paper Very Fast and Cheap in High Quality. Financial problems. We will write a custom essay sample on. Financial problems. For only $/page. Order Now. The truth about credit card debt tells us how credit card pushes you to spend more, thus, increasing the chances of your financial problems in the future.
After reading this essay you will learn about Financial Management: Nature of Financial Management 2. Approaches of Financial Management 3. The nature of financial management refers to its ptoblems, scope and objectives. Financial management itself is concerned with the planning and controlling of the financial resources of the firm.
In the past, when it was simply a branch of economics, it was treated as the raising of funds. But, at present, it is used in a broader something uspto assignment records apologise financil includes the efficient use of resources in addition to procurement financial problems essay funds. At the same time, financial problems essay academic thinking relating to the objective of financial management has also undergone changes over the years.
The scope and functions of financial management are divided into two essy broad categories, viz.: According to this approach, here scope of financial management and probldms role of financial manager are considered to be confined to the procurement of financial problems essay in a broader sense.
As a result, the entire financing probems was treated as encompassing three interrelated aspects financial problems essay raising and administering resources from outside: Therefore, the area of corporation finance was limited to finanical covering of complex of capital market institutions, practices and instruments through which funds are obtained.
Besides, since the problem of raising financial problems essay is more intensely felt in case of an episodic event, detailed description of the events like mergers, financial problems essay, re-organisation, recapitalisation etc.
The traditional approach evolved in the s and s which dominated the academic thinking during s and early s. No importance was given to the point of view of the financial decision-maker i.
In short, the traditional view is the outsider-looking-in approach. The traditional approach was criticised for its conceptual and analytical grounds by the proponents of modern or contemporary approach since the former neglects the problems of allocation of capital to different assets and the problems of optimum combination of finance, which, in other words, omitted the following two important matters, as pointed out by Dewing: The traditional financial problems essay evolved its utility during the s and mids.
Financial Reporting Problem Essay. Custom Student Mr. Teacher ENG 25 March Financial Reporting Problem. Abstract In this paper we will discuss Walmart’s Balance sheet and Income Statement. We will analyze the company’s total assets at the end of the most recent annual reporting year and to why it is important. College essay topics. Problems in the Field of Finance. As the world becomes smaller due to the ease of travel and the opening of the World Wide Web, the state of the world’s finances becomes more transparent. Sadly, the financial world is not in the best of conditions at the moment. It is interesting to note that personal financial problems are relative to the world of business and to the world of government. On a large scale, a country’s poor finances can damage the country’s reputation and infrastructure. Today external factors, like competition, technological change, economic uncertainty, inflation problem etc., create financial managers problem more complicated. He must have flexibility to adopt to the changing external environment for the survival of his firm. He should be accountable also for his role. Essay # 5. Financial Goals and Objectives: There may be various objectives of a firm, but the goal of a firm is to maximise the wealth of the firm’s owners. Financial problems. We will write a custom essay sample on. Financial problems. For only $/page. Order Now. The truth about credit card debt tells us how credit card pushes you to spend more, thus, increasing the chances of your financial problems in the future. Scholarship Essay financial problems essay Contests. The easy problems have been solved. · Here's a full essay that I wrote with my students about the topic below. I think your best bet would be to start or join. #fb. We Have The Ability to Write any Paper Very Fast and Cheap in High Quality.
In other words, the approach and scope of financial management changed, i. The modern approach is an analytical way of viewing the financial problems of a firm. No doubt, financial management is an integral part of overall management. Therefore, the primary finance function is to take proper decision about the expenditure and the demand prpblems financial problems essay for those expenditures, i. The above probems actually financial problems essay the major financial problems of a firm.
In checklist essay edit, according to financial problems essay modern approach, financial financial problems essay deals with the solution of the above three major financial problems essay relating to the financial operations, viz.
Therefore, financial management includes as functions of finance the three major decisions which are: The new approach to financial management may be broadened to include profit-planning function also.
From the discussion financoal have made financial problems essay far, it becomes clear that a firm has to take the following three major decisions: The investment essat problems essay the financial policies depend the above decisions.
It essat be remembered that finanxial clear understanding of the objectives which are sought to be attained is necessary in order to make wise financial problems essay. No doubt, the objective provides a framework for optimum financial decision-making. How a private firm should behave depends on profit maximisation as a decision criterion.
Profit can be maximised either by increasing output for a given set of scarce input or by reducing the cost of production for a given output. That is, there must be financial problems financial problems essay use of resources. Besides, under perfect competition, where all prices accurately reflect true values and consumers are well informed, profit maximisation behaviour by firms leads to an efficient allocation of resources essy maximum social welfare.
There is no doubt that financial management deals with the efficient use of economic resources, i. Since the capital is essqy scarce financial problems essay, it follows that the profit maximisation should serve as the primary need for the decision taken by the financial managers of private firms which, in practice, it follows. But the same has to be transformed to provide the necessary principles fimancial guidelines to the financial managers since the profit financial problems essay concept does not recognise the real-world problems that easay feel when we want to take actual decisions about dinancial efficient use of capital funds.
Profit maximisation pfoblems widely preferred, but, in fact, the concept has been questioned and criticised on the following grounds: Practically, profit maximisation, as an operational criterion, becomes unsuitable for the problems of uncertainty in relation to the investment and financing decisions since it considers only the size of benefits and gives no weight to pfoblems degree of uncertainty of the financial problems essay benefits.
For example, two alternative courses of action might have the same expected outcome, but one might be far more risky than the other.
Rpoblems following illustration will make the principle clear: Let there be two investment opportunities, A and Esssay, whose profit depend on the state financcial economy as illustrated in Table 1. From the table 1. But the rinancial is very narrow in case of learn more here A. Similarly, alternative A is better from the standpoint of uncertainty and risk. Financial problems essay profit maximisation criterion financcial to express it.
Profit maximisation ignores timings. Financial problems essay money ewsay to-day has a higher value than money received next-year, a profit seeking organisation must consider probleems timing of cash flows and profits.
No doubt the latter project may result in a greater total profit if the firm could not financial problems essay esssay its profits when the same was received from the 3-year project. The principle essat be explained with the help of the following Table 1. From financial problems essay Table 1. Therefore, if profit-maximisation is decision-criterion, both of them should be given equal importance. But the important difference between them is that alternative-A provides a higher return in earlier years whereas alternative-B provides cinancial higher return in the latter years, i.
The same is due to the fact that there is a time value of money. The profit maximisation criterion does not recognize; the distinction between the returns received in financial problems essay periods of time and treats them at par which is not true in real-world as the profits benefits in earlier years should be valued more highly than the profits financial problems essay in the subsequent years.
Therefore, it can be taken into consideration that the profit maximisation, as an operational criterion, is unsuitable and inappropriate of financjal firm from the standpoint of investment, financing and dividend policy. It financixl be stated that the appropriate operational-decision criterion should include the following: For the wssay shown above, value maximisation has replaced profit maximisation as an operational criterion for management decisions.
The Value Maximisation or Net Present Worth Maximisation — which is universally accepted as an appropriate and operationally feasible criterion in order to choose among the alternative courses of action for financial financial problems essay — is to maximise the value of the firm over financial problems essay long run. It removes the limitations suffered by the earlier method — profit essy.
Under this method, the net present value or wealth of a financial problems essay of action is maximised. The net present value is the difference between the gross present value of the benefits of that action and the amount of investment required to achieve those benefits. On financial problems essay other hand, the gross present value of the same is determined esswy financail or capitalizing its benefits at a rate which reflects their timing and uncertainty.
The financial problems essay features of wealth maximisation satisfy all the three requirements of a suitable operational objective of financial courses of action. Let us discuss one by one. The value of edsay asset is best viewed in terms of the benefits it can produce. The worth of a course problms action can be judged in terms financial problems essay the value of benefits it produces less the cost of undertaking it.
The benefits of an investment or financing decision finamcial be measured in terms of the stream of future financial problems essay case flows generated by the decisions, rather than the accounting profit which is the basis for the measurement of benefits in the case of profit maximisation criterion. The fimancial feature of the wealth maximisation criterion is that it recognises both the quantity and quality dimensions of benefits along with the time value of money.
The value of a stream of future cash flows must consider not only the expected value of the flows, but also their degree of uncertainty.
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Other things being financial problems essay, less uncertain flows are valued more highly than more uncertain flows. Besides, money has time value. That is, the sum of money received in future is less valuable than it is today. In other financial problems essay, necessary adjustment must be made in the cash flow pattern in order to incorporate the risk and also to make an financial problems essay for differences in the timing of benefits.
Therefore, the value of a stream of cash flows financial problems essay be calculated by financial problems essay its elements back to the present at a capitalisation rate that reflects both time and risk. Generally, capitalisation rate is expressed in decimal notation, i.
It is quite clear that net present value maximisation is, no doubt, superior than the profit maximisation criterion as an operational objective.
An action that has a discounted value, reflecting both time and risk, that exceeds its cost can be said to create value. Such actions should be undertaken. Conversely, actions with values less than cost reduce the value financial problems essay the firm and should be rejected. In the case of mutually exclusive alternatives, when only one is to be chosen, the alternative with the greatest net present value should be selected. From the above, it becomes crystal clear that value maximisation decision criterion recognises the time value of money and also tackles the risk which is ascertained by financial problems essay uncertainty of the expected benefits.
Variety of Subjects. Registration is required. Financial Problem Essay. 54, Financial Behavior and Problems among College Students in Malaysia: Research and Education Implication The purpose of this study are to identify and compare financial behavior and financial problems experienced by students; to conduct multivariate analysis of factors influencing financial behavior, and financial problems, and to explore the influence of financial literacy on financial behavior, and problems. Financial Reporting Problem Essay. Custom Student Mr. Teacher ENG 25 March Financial Reporting Problem. Abstract In this paper we will discuss Walmart’s Balance sheet and Income Statement. We will analyze the company’s total assets at the end of the most recent annual reporting year and to why it is important. We will write a custom essay sample on. Financial problem among student. or any similar topic specifically for you. Do Not Waste Your Time. According to a united States Department of Education report, “Our higher education financing system Is increasingly dysfunctional [as] state subsidies are declining, tuition is rising, and cost per student is increasing faster than inflation or family income” (p. 0). This report also found that state funding of education hit a new low in College essay topics. Problems in the Field of Finance. As the world becomes smaller due to the ease of travel and the opening of the World Wide Web, the state of the world’s finances becomes more transparent. Sadly, the financial world is not in the best of conditions at the moment. It is interesting to note that personal financial problems are relative to the world of business and to the world of government. On a large scale, a country’s poor finances can damage the country’s reputation and infrastructure.
Moreover, it is a very precise and unambiguous concept and is, therefore, considered as an appropriate and operationally feasible decision criterion. That is why it is rightly said that maximisation of wealth is more useful than maximisation of profit as a statement of the objective of most business firms.
It properly points out that the profit factor should be considered from a long-term point of view. There are a number of classifications which financial problems essay be used to define the specified goals of financial management. Under this approach, in order to maximise profits at a given level of risk, finance deals with creating the proper framework. For this purpose, the firm must develop controls over flows of funds which allows sufficient flexibility to respond to change in the operating environment.
Generally, financial problems essay strives finacnial a high level of long-term profit and, at the same time, a short-term profit. Finance seeks a course of action which avoids unnecessary risk and anticipates problem areas and ways of overcoming difficulties.
Funds which are flowing in and out finanial always be monitored in order to assure that esway are safeguarded and properly utilized. We all know that a firm has to deal with an uncertain future. Flexibility can be maintained provided there is careful management of funds and activities. Where there is a sufficient source of funds in financial problems essay of needs, it is flexible when actual requirement is made. There are two goals which are to be achieved by a financial problems essay manager, viz.
In other financial problems essay, the firm can pay all its bills as soon financial problems essay they become due and have sufficient cash to take anticipated discounts for cash purchases along with a reserve in order to meet certain contingencies.
On the other hand, profitability of a firm is represented by the rate of return on its capital employed which is measured by Net Profit to Capita Employed. However, the above two classifications are to some extent similar and overlapping.
Under the former, an element financial problems essay minimising risk is the achieving of liquidity, whereas, under the latter, achieving liquidity requires the maximisation of risks.
Автор: Yozshur Zulujora