Content of Finance Functions
The areas of responsibility covered by finance functions may be regarded as the content of finance functions. These areas are specific functions of finance functions. The following chart list the specific functions mentioned by some authors on the subject.
A study of this chart shows that some functions involve decision making and are of strategic importance, some functions relate to routine work and are undertaken to implement decision and some functions relate to business activities of non-recurring nature. Thus, all financial functions may be classified into three broad groups :
(1) Decision making of Managerial or Executive functions.
(2) Incidental functions, and
(3) Non-recurring functions.
It may be noted here that the above classification is not absolutely scientific. For example, incidental functions and non-recurring functions also involve decision making.
In order to explain the content of finance functions more clearly, all the finance functions grouped in the following manner are being discussed:
(i) Financial Planning.
(ii) Financial Control.
(iii) Financial Decisions.
(iv) Investment Decisions.
(v) Management of Income and Dividend Decision.
(vi) Incidental Functions.