Financial Planning

Financial resources are those resources that have monetary value Financial management is the planning and monitoring of an organizations financial resources to enable the organization to achieve its financial goals Assets are the property and other items of the business both tangible and intangible. Objectives of financial management: Liquidity - ability to pay short-term debts. Profitability - maximizing profits Efficiency - ability to maximize profits with minimal resources Growth - increase size in the longer …

…is possible to take advantage of interest free periods and discounts. Loans - management of loans is important because they require interest to be repaid along with the loan. Overdrafts - can be used for temporary cash shortages. Strategies for managing working capital Leasing Factoring Sale and lease-back Asset stripping involves taking assets out of the business that are not needed. Corporate raiders buy business, sell assets and leave them for broke. Both are unethical.