ATTENTION:
BEFORE YOU READ THE CHAPTER ONE OF THE PROJECT TOPIC BELOW,
PLEASE READ THE INFORMATION BELOW.THANK YOU!
INFORMATION:
YOU CAN GET THE COMPLETE PROJECT OF THE TOPIC BELOW. THE FULL
PROJECT COSTS N5,000 ONLY. THE FULL INFORMATION ON HOW TO PAY AND GET THE
COMPLETE PROJECT IS AT THE BOTTOM OF THIS PAGE. OR YOU CAN CALL: 08068231953,
08168759420
RELEVANCE OF
FINANCIAL MANAGEMENT TO BUSINESS GROWTH IN NIGERIA
ABSTRACT
The prerequisite of this extended essay
is to know the Relevance of Financial Management to Business Growth in Nigeria.
Financial management is relevant to
business growth for a well balanced operation. As businesses in Nigeria are
made up of small, medium and large scale enterprises need financial management
to operate well. The ultimate aim of financial management is to plan and
forecast the profit making and sourcing of fund for business growth. Money is
needed in financial management and used in making plans work. It serves as a
measuring device that can be used in measuring the plan in terms of naira, and
outsiders, such as bankers and other lenders, will do the same.
In starting new business or expansion
loan is required. The burden of proof in borrowing money is upon the borrower.
You have to show the banker or other lenders how the money borrowed will be
used and more important how and when you will repay back the loan.
The extended essay also look at
budgeting, as organisation, whether economic, social, or political makes plans
for an organisation. Without plan there is no longer an organisation but an
uncoordinated assortment of individuals. Some biz-owners/managers carry plans
in their head, some make rough estimates on their business and others express
their plans in orderly and systematic manner.
An important feature of this extended
essay is that the methods taken are in form of data collection through primary
and secondary sources. The primary includes questionnaires and oral interview
and secondary source include work of authors which were acknowledged.
Finally, the main findings and
recommendations are based on the information on the conclusions drawn up to cap
the work.
CHAPTER ONE
1.0 INTRODUCTION
The Financial Function has always been important in
business management. Irrespective of differences in structure, ownership and
size, the Financial Organisation of the enterprise ought to be capable of
ensuring that the various finance functions: - Budgeting and controlling are
carried out with the highest degree of efficiency. The profit ability of any
business depends largely upon the manner the financial functions are performed
and related to other business function.
During the developing stage,
financial management involves only the obtaining of funds to finance the
business. Overtime, financial function has increased in its scope to include
not only the planning of finance, but incorporate the management and control of
the available resources within the firm. This also involves the external
generation, flow and uses of funds and, the study and evaluation of the capital
market.
When talking of the capital market,
its operations within the economy cannot be over emphasized. Thus, the demand
for and supply of funds for business organizations, become a fundamental
management function. Therefore, financial management play an important role
both in increasing operational efficiency within the firm and allocating funds
to productive or investable sector within and outside the organization.
These functions can only be achieved
when there is proper planning and controlling, coordinating and other elements
of management combined effectively with the finance function.
1.1
HISTORICAL BACKGROUND
Jomfol Investment Company Nigeria
limited was incorporated in 1989. The main business of the company as contained
in the memorandum and Articles of association amongst others is to carry on business
as farmers, farm developers Livestock and poultry business, fisheries hatchery,
producers and process or grains and all manners of crops, manufacturer of Livestock
feed and concentrates etc.
The nature of the business activities
includes; - manufacture, distribution and sales of poultry feeds and poultry
raw materials and other related activities.
The raw materials concerns in the
providing these activities includes; maize, soya beans, Soya cake, groundnut
beans, and cake, wheat brain, maize brain, sorghum, palm kernel cake, spent
grain, Bone meal, Fish meal, cottonseed cake, methionine, lysine, premixes,
salt etc.
1.2
STATEMENT OF PROBLEM
Financial management is a feature,
which govern the whole process of organizational management. Emphasis is often
on planning and control used within an organisation to strengthen area of
potential weakness or to capitalize on more effective opportunity for the
business. The purpose of undertaking this study is to identify the important
role financial management practice can help in managing an organisation to
greater height.
All organisations, be it public or
private need financing to attain better positions. Hence, the problems of
financing all business may include: High Cost of capital. Since the acquisition
of capital by small business usually attract high financial interest rates
these exposes them to risk and the unsatisfactory profits is another phenomenon
which hinder small business from paying back.
Deficiencies in financial management
are another problem encountered by small business as managers or owners lack
experience in financial management. Only posses pool of expertise in production
and sales. Also is the weakness in financial planning as they are always busy
directing operations and satisfying customers having no time to keep adequate
data to facilitate financial projections.
Other problem includes the inability
of small business to save, plough back and obtains loans due to Nigeria factors
and no collateral securities.
1.3
OBJECTIVES OF THE STUDY
1.
This
study attempts to provide an orderly framework for “Financial Appraisal in
Small Business Management”.
2.
It
is aimed at inquiring on how Government has contributed to the progress of
business activities.
3.
Inquire
the possible causes of uncontrolled cash and management of resources, the
techniques methods of evaluation and performance of financial policies, method
being used in business organizations.
1.4
SIGNIFICANCE OF STUDY
A very good view at the appraisal of
financing to small business organization in previous times, has show that
managers within an organisation were more concerned with one matter or the
other, and their environmental forces at different periods.
It is significant to know that in
management financial, it requires the knowledge of certain functions which
include: - Financial and Management Accounting, Law, Economics, Quantitative
methods (like Mathematics and Statistics and Taxation). They are not part of
Financial Management but support it in that, they provide useful information or
give an understanding of the constraints within which the activity of the
financial management takes place.
The specific functions of financial
management are to ensure that funds are:
(a)
Made
available at the right time,
(b)
Made
available for the right length of time,
(c)
Obtained
at the lowest cost and
(d)
Used
in the most effective way.
The consequences of bad financial
management can be very serious, if the above functions are not met at times.
In order to ensure that there is good
financial management, we must develop sensible objectives, useful concepts,
techniques for analyzing situations and principles for the guidance of action.
The research will assist the management of the organization and provide a clear
defined target output for each department.
Finally, this project will broaden
the research knowledge of the topic and will serve as a platform for further
development in these area of study.
To this end the research will be significant
to management of small business for the following purpose:
-
Formulating
the policies of the organization.
-
Planning
the activities of the organization in long term medium and short –term planning
-
Controlling
the activities of the organization.
-
Decision
making.
1.5
RESEARCH QUESTION
1.
What
are the sources through which the organizations gets funds to finance its
activities?
2.
Is
Bank loan on of the sources of funds? if yes, how is the interest rate?
3.
What
are the problems encountered by your organization in its effort to secure bank
loan to finance it activities?
4.
What
are the problems associated with other sources of funds to the organization?
5.
In
the managing of it finances, do the organization use budgeting tools?
1.6
STATEMENT OF HYPOTHESIS
Ho: Effective and efficient management of a
finance of a business will enhance
its, profitability.
Hi: Effective and efficient management of a
finance of a business will not enhance
its, profitability.
1.7
SCOPE OF THE STUDY
The scope of the study is limited to
Jomfol investment company Nigeria Limited. Being a private organization (i.e.
small scale business) that is funded by its sales revenue and other sources of
fund. Its also on how to bring about business growth in Nigeria via appropriate
financial planning and control.
1.8
DEFINITION OF TERMS
Business firm: An
Organization engaged in the production of goods or services.
Budget: A statement
of plans and expected results expressed in financial and quantitative terms.
Capital: money used
to start a business or to produce more wealth.
Credit: The ability
or right to buy in return for a later payment
Control: Correcting diverts to meet with
actual plan.
Debt Capital: Borrowing
or loan, capital invested in the business that must be repaid.
Depreciation: Allocation
of cost of an asset which will be used over the asset service life.
Fixed Capital: Long term
capital invested in the business
Forecast: An estimate
of the form’s future sales or the probability of occurrence of future business.
Financial Institutions – Are business organisation that
lend money.
HOW TO GET THE FULL PROJECT WORK
PLEASE, print the following instructions and information if you
will like to order/buy our complete written material(s).
HOW TO RECEIVE PROJECT MATERIAL(S)
After paying the appropriate amount (#5,000) into our bank Account
below, send the following information to
08068231953 or 08168759420
(1) Your project topics
(2) Email Address
(3) Payment Name
(4) Teller Number
We will send your material(s) after we receive bank alert
BANK ACCOUNTS
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 0046579864
Bank: GTBank.
OR
Account Name: AMUTAH DANIEL CHUKWUDI
Account Number: 2023350498
Bank: UBA.
FOR MORE INFORMATION, CALL:
08068231953 or 08168759420
AFFILIATE LINKS:
myeasyproject.com.ng
easyprojectmaterials.com
easyprojectmaterials.net.ng
easyprojectsmaterials.net.ng
easyprojectsmaterial.net.ng
easyprojectmaterial.net.ng
projectmaterials.com.ng
googleprojectsng.blogspot.com
myprojectsng.blogspot.com.ng
https://projectmaterialsng.blogspot.com.ng/
Comments
Post a Comment