ACCOUNTING AND FINANCIAL MANAGEMENT FOR SUSTAINABLE DEVELOPEMNT
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IUsiness enterprise is essentially an economic organization and has to maximize the welfare or the interest
f the members. For this, it has to earn surplus profit, savings or by whatever name it is called, on its
perations. This means that its receipts should be more than its expenses over a period of time, though what
rill be done with this surplus depends upon the objectives, philosophy, ideology and a number of other
1ctors. The objectives of this paper is to find ways of measuring the success of a business enterprise, which
; to compare the volume of. such surplus with investment made in business, and how the financial
1anager' s maximization of the market value of the firm. Since the financial manager is a key member of the
)p management team, his decisions are felt throughout the firm. Funds flow to industries where earnings
xpectations are high, and the individual firm allocates its available funds to projects that promise the rate of
~turns, always considering the risk involved. The paper recommends that financial managers should be
oncerned with the selection of specific goals like the types of assets that organization should acquire, the
mount of the funds that should be used for expansion, the sources and application of funds, followed with
1e strategic components of financial planning: setting financial objectives, planning ongoing operations,
apital budgeting and optimal financing structure. Profit planning compels management for sustainable
uture of our economy.
Keywords
HF5601 Accounting