In this article we will discuss about the risk and return faced while financial planning of a company. Costing and Risk: The word 'costing' relates to the ascertainment of cost of capital from different sources like equity capital, preference capital, debentures, long-term loans etc. The most crucial decision of any company is involved in the formulation of its appropriate capital [...]
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 be met by internal generation [...]
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 long-term to create production facilities [...]