The relationship between financial management and other functional areas can be defined as follows: 1. Financial Management and Production Department: The financial management and the production department are interrelated. The production department of any firm is concerned with the production cycle, skilled and unskilled labour, storage of finished goods, capacity utilisation, etc. and the cost …
Financial management is broadly concerned with the acquisition and use of funds by a business firm. In other words, FM is planning, directing, monitoring, organizing, and controlling of the monetary resources of an organization. FM scope may be defined in terms of the following questions: 1. How large should the firm be and how fast …
Financial management is defined as the management of flow of funds in a firm and it deals with financial decision making of the firm. Financial management includes any decision made by an investor that affects his finances. In financial management the emphasis is laid on optimum utilization of funds. Financial management is important to all …
By privatizing state-owned monopolies and deregulating whole industries, governments the world over have brought market forces to bear on electricity, telecommunications, and other economic activities formerly carried out in the public sector. This increased market pressure has in turn raised productivity as organizations in once-sleepy fields apply performance-enhancing tools long employed by private enterprise. Governments, …
Internal control is an integral process that is effected by an entity’s management and personnel and is designed to address risks and to provide reasonable assurance that in pursuit of the entity’s mission, the following general objectives are being achieved: • executing orderly, ethical, economical, efficient and effective operations; • fulfilling accountability obligations; • complying …
The Government of India started the economic liberalization policy in 1991. Even though the power at the center has changed hands, the pace of the reforms has never slackened till date. Before 1991, changes within the industrial sector in the country were modest to say the least. The sector accounted for just one-fifth of the …
The liberalisation policy unveiled in July 1991, initiated wide ranging policy and regulatory reforms. Industry was freed from Licence Raj’, public sector monopoly was removed from most of the sectors, quantitative restrictions on imports were either reduced or removed completely, upper cap on sectoral FDI was raised considerably or removed completely, the number of industries …
The Liberalization of India According to Eichenberg in his lecture on February 2, 2000, liberal international relations theory suggests that the key to peace is through the promotion of free trade and the institution of democratic principles. In late 1991, with the transfer of the Indian Parliament into the hands of political and economic reformers, …
ECONOMISTS HAVE generally held the view that private ownership of the means of production would be better in terms of economic efficiency than public ownership and public management. Public ownership owed its origin to the phenomenon of widespread marked failure in industries in which competition is impossible or undesirable, or where major externalities exist. Following …
Definitions of public enterprise can vary between countries and change over time. The United Nations definition of a public enterprise is ‘an incorporated or large unincorporated enterprise in which public authorities hold a majority of the shares and/or can exercise control over management decisions’. Some of the problems with this approach are reviewed in the …