FINANCIAL MANAGEMENT IN GOVERNMENT OWNED COMPANIES
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FINANCIAL MANAGEMENT IN GOVERNMENT OWNED COMPANIES
INTRODUCTION TO CHAPTER ONE
1.1 STATEMENT OF THE PROBLEM AND THE PURPOSE OF THE STUDY
The problem statement is to conduct an investigation into the field of financial management practise in government owned companies, with particular reference to Nigeria Limited, and to highlight the financial problems that these companies face in this problem.
To identify and investigate some of the variables that impede successful financial management in government-owned businesses.
To determine why such problems have been difficult to address and to give recommendations and suggestions on how to fix them.
Investigate other areas that, in the writer’s perspective, are important for effective fund administration.
To suggest, both broadly and specifically, the study of financial management.
1.2 THE RATIONALE FOR THE STUDY
Financial management varies depending on the nature of the organisation in question; once the corporation’s goal has been set, the assessment of the entire business structure and the related financial demand is as follows:
The goal and objective of financial management is to maximise shareholder wealth. With this in mind, they should formulate the firm’s objective in terms of share holder interest, which is the main base of the financial market.
That is, firms with greater performance will have higher stock prices, and extra funds can frequently be pressured. The goal of financial management is to maximise the firm’s value (i.e. profit maximisation compared to investment).
Some unprofitable short runs may be required to get these.
The company’s financial management goal is to maximise its worth to its shareholders.
1.3 SIGNIFICANCE OF THE STUDY
Financial management is critical to achieving the firm’s goals and objectives. Because it assists financial managers in carrying out their effective project financial management in government-owned companies helps to see how the field of financial management will contribute to a better improvement of the study of finance, thereby minimising the result of our investment and divided decision-making by companies.
It assists the financial manager in decision making by planning for future events that may occur during day-to-day business operations.
1.4 BACKGRPOUND OF THE STUDY
Nigeria Limited, an economic parastatal, was established in May 1962 under ordinary company law as a collaboration between the former Nigerian government and the mentioned machine.
The firm supplied the plant and managed the affair till the conflict broke out in 1967. It is Nigeria’s only indigenous gas production enterprise.
Following the end of the conflict in 1970, the company was reactivated and manufacturing began on April 1, 1975. Between 1983 and 1984, the cram shaft failed, resulting in a halt in production. The state government provided the corporation with #733.000, which was later turned into their share and loan.
1.5 DEFINITION OF TERMS
Financial management can be defined as a financial manager’s function and areas of responsibility, such as.
The process of raising finances to support a project.
The use of funds to fund a feasible enterprise.
The management of the cash flow generated by these projects
The return of funds to the sources of support. This fund is raised from the financial market and assigned to various uses. The flow of funds engaged in the enterprise’s operation is managed.
Any individual responsible for finance, in any form, is presented with the prospects of inflow and outflow at receipts and payments, and they arise.
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