The Impact Of Financial Management In A Corporate Organization

The Impact Of Financial Management In A Corporate Organization

Abstract

This project used NICON insurance as a case study to investigate “the impact of financial management in a corporate organization”. Planning and managing an organization’s finances is known as financial management. It is done to accomplish the organization’s goal, which may include maximizing profit and wealth, accurately estimating the organization’s overall financial needs, properly mobilizing funds, effectively using those funds, etc. Both the study’s issues and its goals, which include examining the effects of financial management on business structure, have been recognized. Reviews of related literature were conducted, and the research methodology—which includes population, data source, sample size, and method of investigation—was examined. After doing her examination, the researcher came to a number of conclusions, one of which was the significance of the finance management to a business. Conclusions and suggestions were offered.

Chapiter 1

Introduction

1.1 History Of The Study

Financial management includes all of the actions taken by financial managers to address the increasing need for capital, cash, and credit as well as the efficient administration of financial resources.

An organization’s financial management performs a variety of tasks, such as converting forecasts into plans and budgets, choosing the best capital structure, raising cash from outside the company, projecting the future, investing surplus funds, and managing the cash balance and flow in accordance with strategies and changing conditions.

Based on the aforementioned activities, practicing managers are interested in the study of financial management because one of the most important decisions made by businesses is one that has to do with money. As a result, they are giving better attention to a better understanding of financial management, which gives them conceptual and analytical insight on the capital fund and how to use the capital fund, which is known as the financial function of any firm.

Since it deals with the real flow of money as well as any claim against money, financial, which was developed in 1990, is the lifeline of any business. The financial managers’ decisions after that are made in a manner that is more coordinated and accountable for the control system.

The financial management makes sure that money is distributed among the various users in an efficient manner. The distribution of resources with the firm’s main goal being to maximize profit in the wealth of the consumers. The job of financial management has evolved from working capital management to include managing long-term assets and liabilities. As a result, this research prefers to use NICON as a case study to analyze the effects of financial management in cooperative establishments.

STATEMENT OF THE PROBLEM

1. Inadequate planning by the financial managers, which causes a company organization to suffer financial losses.

2. Mismanagement of funds/finance intended for the operation of the organization is prosecuted in order to acquire pointless assets for the company.

3. The financial management made poor financial decisions about investments, financing, and dividends.

1.3 Purpose Of The Study

1. To investigate the role of the financial manager in a corporate setting.

2. To determine the tasks and responsibilities of the financial manager in financial management.

3. To learn about the issues and difficulties faced by finance managers in a corporate setting in Nigeria.

4. The financial manager should provide answers and advice on how to handle finance management in a business setting.

1.4 Questions For Research

1. How does financial management affect a company organization?

2. Are there any issues that finance managers in an organization are facing?

3. How effective and efficient are finance managers in an organization’s decision-making?

4. What are the results of financial managers misusing their resources?

5. Does the financial manager’s careful planning have any advantages?

1.5 Relationship To Other Studies

In the following respects, the research work will be more significant and helpful to students, financial managers, investors, corporate organizations, governments, and the general public.

To the financial manager: Your research will help you understand your overall tasks, responsibilities, functions, and financial management. It will also help you make decisions about your financial planning, investments, and diversifications.

To the investors: The research will teach them what the responsibilities of financial managers are and what the best methods are for identifying the most effective financial manager.

To the government: The researcher study aims to act as a tool for the government to identify the businesses that significantly contribute to the expansion and development of the country’s gross domestic product (GDP).

To the student and general public: The research effort will serve as a resource for additional study and research on a similar topic in the future.

1.6 The study’s scope and limitations

“The impact of financial management in a corporate organization using the (NICON) in Enugu state” is the focus of the study project.

During the course of conducting this investigation, the researcher ran into a few obstacles. Among the difficulties are a lack of funding, insufficient contact with some respondents, bias, and mistrust based on misunderstandings or misconceptions about the research topic.

Additionally, the time allotted for this research project is woefully insufficient because the researcher must balance it with their regular academic assignments.

1.7 Term Definitions

Accumulated profits: The amount reflected in the relevant profit account that may be carried over to the following year’s account;

Activity ratio is a management term for a ratio that compares the production level for an accounting period to what is thought to be feasible;

Amortization is the process of treating the yearly sum that is thought to be lost from a fixed asset as an expense.

A balance sheet is a declaration of an organization’s total assets and liabilities as of a specific date, typically the final day of the accounting quarter.

Benchmarking is the process of locating the best practices for goods and processes, both inside and outside of an industry, with the goal of using these as a roadmap and a point of comparison for one’s own firm.

Budget: A financial or quantitative statement that is created in advance of a given accounting period and contains the goals and policies that will be followed throughout that time.

Cash flow is the amount of money a company brings in and spends; it is frequently broken down into its constituent parts.

Corporate image refers to the representation of a firm that it projects. to project a good reputation for how a business handles the environment or its people.

Dividend: The payment of a portion of a company’s profits to its shareholders.

Earnings before interest and taxes, or EBIT.

Embezzlement is a type of theft in which a worker fraudulently appropriates funds or other assets that have been given to them on the employer’s behalf.

The art or practice of managing and manipulating money is referred to as finance.

Goodwill is the difference between a business’s separable net asset value and its overall business value.

Investment: The acquisition of capital goods, such as factory equipment and machinery, to produce items for future consumption.

LIQUIDITY: The degree to which a company is able to move into new investment opportunities as well as pay its debts as they become due.

Profitability is a project or organization’s ability or potential to turn a profit.

Ratio analysis is the process of using ratios to assess a business’s operational efficiency and financial health.

A sum of money offered in exchange for a service is known as remuneration.

Salary: A regular payment paid to an employee by an employer pursuant to an employment contract. Salary payments are often made monthly.

Solvency: The capacity of an individual or business to meet all of its financial obligations when they become due.

Yield is the numerous ways in which an investment’s income is expressed. The interest that a fixed interest instrument pays, stated as a percentage of its par value, is known as the nominal yield.