There
are few important terms regarding funds, it is very important to understand the
differences from each other of these terms. These are defined very briefly and
simply for a better understanding of the readers.
THE FUND MANAGEMENT
Fund management
can be simply defined as it is the management of the cash flow of financial institutions.
The manager is supposed to ensure the balance between the demand and supply of
the funds of the institutions. The fund manager is supposed to evaluate the liabilities
and assets and determine the limit for issuance of the loans.
THE FUNDING MANAGEMENT
Fund
management can be simply defined as it’s the management of the Cash flow of the
financial institution.
THE FUND MANAGER
The role
of the funding manager can be simply described as, the person who is managing
the funds is known as the fund manager, the core responsibility of the fund
manager is to manage the receipts and payments of the banks. By evaluating the
receipts and demands for payment he decides the level of issuing credit to new
customers.
TYPES OF FUNDS
The sources
of funds can also be termed as the types of funds. The funds can be divided
into four main types which are the equity of any firm, seconds is bonds or
fixed income, third is short term and long term debt from external sources
(Money market funds) and last one is both stocks, loans, and bonds it is also known
the hybrid funds.
DIFFERENCE BETWEEN FUND AND FUNDING
The fund
can be defined as the Money and the funding can be defined as the money comes
from where? or simply we say that the source of money is funding. For Example, the
manager has funded the working capital by getting funding from retaining the earnings
of the organization.
FUNDING MANAGEMENT OF MULTINATIONAL
CORPORATIONS
The
funding management of Multinational Corporations (MNCs) is managed by the top
management of the Multinational corporations (MNCs). It is the most complicated
and expert financial management skill to manage the funds. The major money is
involved in these decisions. So, similarly, the value of financial risk is also
high. The managers are required to decide which source
of funding should be selected for meeting the funding requirement of the Multinational
corporations (MNCs). Or to make a hybrid funding source, they also require to
decide that how much volume of funding should be decided from each source of
funding. This is the main reason the board of directors of any Multinational
Corporations (MNCs) is very careful in selecting the Chief Financial Officer
(CFO) for their organizations. Because their decisions matter a lot for
increasing or decreasing the wealth of the stockholders.
INTERNATIONAL FINANCIAL MANAGEMENT
International
Financial Management can be simply defined as, the financial management of
international businesses. It is not similar to the local financial management because
the financial management is not involved with different currencies and their
expected fluctuations, future predictions by keeping in view the political and
social situations of the respective countries.
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