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Sample on Managing Financial Resources

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Introduction to Management

Management of financial resources is very essential in the process of decision making. It is required at all levels as finance is the major element to be imposed in the business. In the following report, the different sources of finance available to the firm will be presented. Discussion of ratio analysis will be presented to elaborate the financial records of the business.

Sources of finance available to business

Finance is the key element which is required for every kind of business that is irrespective of its nature. It is essential at every level of operation. Considering the different types of business such as new and old, large and small business entities for the purpose of new business set-up and expansions, the sources of finance are available to them which are as follows:

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Retained earnings – For old business firms who are operating since a long period, the best source of funding that is available to them is retained earnings. It is the amount which is kept as reserve out from the profits and is accumulated every year in a particular proportion (Fridson and Alvarez, 2002). This amount could be used for the purpose of expansion or for setting up the new venture of similar

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