Skip to main content

Assets

By
Fixed Assets - This type of assets indicate the infrastructural facilities and properties required by the organisation. Fixed assets are the assets which bring profits in the long span of time. The investments decisions in this type of assets are technically referred as "Capital Budgeting Decisions" and generally concerned with the following -
  • How one should select the fixed assets which are actually needed by the business or fulfill the business purpose?\
  • What are the methods or modes of analysis of the type of investments to be done in this type of assets?
  • Incase of uncertainity and risk, how one should make a decision to invest in Fixed assets?

Current assets: - Assets that are generated over during the operations and are capable of converting into the form of cash or getting utilised within the short period of time,lets say one year.

The type of investments decisions which are made so as to invest in Current assests are technically refferd as "Working Capital Managemt" and are generally concerned with -

  • What are the objectives of the WCM?
  • Why there is the need of WCM?
  • What are the factors that can affect the requirement of working capital?
  • How one could quantify the requirement of WC?
  • What are the sources available for financing the requirements of WC?

 

Comments

Post a Comment

Popular posts from this blog

The fantastic

By
Beat them up
Post a Comment
Read more

Fixed Assets Management

By
Fixed Assets Management - Capital Budgeting Decisions Fixed assets are like the properties, infrastructure facilities that are required by the business operations to complete successfully. A finance executive has to evaluate and decide on which fixed assets the company should invest so that company can perform all its current and proposed future functions. There are various techniques that are available and that can be used by the finance department to evaluate various proposals for the investments like - pay back period, Net Present Value, internal rate of interest, profitability index. Once the economic value of those fixed assets gets over than a proper depreciation policy should also be formulated.      
Post a Comment
Read more

Significance of Managerial Economics

By
As per Prof. Baumol - The three main contributions of economic theory to business economics are - Building analytical models which help in recognising the structure of managerial problems and eliminating the minor details which might hamper decision making and distracts from the main issue. ME can develop tools that may not directly apply to the issue but may enhance the abilities of Business analyst so that he can analyse the issue in much detail and provide a efficient solution. ME provides clarity in various concepts in the business analysis that enables managers to avoid conceptual pitfalls. Decision making in today's business involve a great amount of risk and uncertainty due to uncertain market forces like - policies, demand & supply, changing business environment, political changes etc. This uncertainty and risk in decision making can be greatly reduced if the business conditions and environment in which a business operates can...
Post a Comment
Read more