Managing Financial ResourcesPrepared bySubmitted toWord count2087 IntroductionThere will be a number of issues in the business to manage. Managing them and using judiciously will result in profitability of the business. The most important of those managements is the management of financial resources. The financial resources management involves, retail, corporate, investment, private banks, mutual funds, investment trusts, life and general insurance and reinsurance companies, credit issuers, specialist lending companies, stock exchanges, leasing companies, government savings institutions, brokers and agents. The difference in the management of financial resources is le3ss and at the same time distinct also.
There is less difference in the need of the management of the financial resources and each sector is distinct in the way it requires the management of financial resources. The financial resources management will accelerate mergers and takeovers of the corporate companies. This is made possible by deregulation of financial services and their management. This enabled the companies to take the services regarding financial resources from outsiders. This means that the financial resources management also can be outsourced. The resources management will be positive and yields good results when it is above the traditional barriers.
For example, the building societies in UK cannot provide home loans and savings accounts. The need of financial resources is very much less. The management of the resources gained importance when they are allowed to do this 1986. This even resulted in the societies converting into banks also. This in turn increased the financial resources of the UK society. Not only regarding the building societies, even small and medium size enterprises also started exporting to foreign countries. This demands extra financial resources and usage of them according to the situation in the foreign country, the goods to be exported.
This financial resources management results in business to business financial services that manages the resources in order to increase the business. The deregulation of retail and investment resulted in emergence of new markets and new corporate entities. This situation increased the financial resources and management of them. In fact the effective financial resources management resulted in the growth of economy of European and American countries and resulted in expansion. In the UK and other European countries, the level playing field concept under single market program needs financial management.
The financial resources management is also a need of the transactions that increased beyond the borders of the country. Financial ResourcesThe financial resources will be mainly of three types. The first one is the equity of the company and the second one is loan acquired from banks and other financial institutions. In case of corporate companies, the equity plays the main role and in the context of small companies, the loans acquired from banks or other financial can be considered as important financial resources.
This difference in the importance of the resources will make the financial management of the corporate companies and the small businesses different. The third one will be the earnings incurred in every financial year. Financial Management of Corporate Companies The non linear models and their application: