Archive | Financial Planning

Financial Plan: Meaning, Objectives and Characteristics

After reading this article you will learn about the Financial Plan:- 1. Meaning of Financial Plan 2. Objectives of Financial Plan 3. Characteristics 4. Considerations. Meaning of Financial Plan: A financial plan is a statement estimating the amount of capital and determining its composition. The quantum of funds needed will depend upon the assets requirements […]

Financial Planning: Need, Steps and Limitations

After reading this article you will learn about Financial Planning:- 1. Need of Financial Planning 2. Steps in Financial Planning 3. Limitations. Need of Financial Planning: According to Cohen and Robbins, financial planning should: 1. Determine the financial resources required to meet the company’s operating programme; 2. Forecast the extent to which these requirements will […]

Finance and It’s Classification

This article throws light upon the top two categories for the classification of finance required for a business. The categories are: 1. Fixed Capital 2. Working Capital. Classification of Finance: Category # 1. Fixed Capital: Meaning and Definition of Fixed Capital: The term ‘fixed capital’ stands for that amount of capital which is required for […]

Over-Trading: Meaning, Consequences and Remedies

After reading this article you will learn about Over-Trading:- 1. Meaning of Over-Trading 2. Causes of Over-Trading 3. Signs 4. Consequences 5. Remedies. Contents: Meaning of Over-Trading Causes of Over-Trading Signs of Over-Trading Consequences of Over-Trading Remedies for Over-Trading 1. Meaning of Over-Trading: In simple words, over-trading means, “a situation where a company does more […]

Comparison between Book Value and Real Value

The over and under capitalisation situations of a company can also be ascertained by comparing the book value and real value of equity shares of the company. The book value of equity shares is calculated on the basis of net assets available for equity shareholders. It can be computed by dividing the net assets available […]

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