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Budgeting, analysis of investment proposals, and provisions of funds are activities associated with what functions inside the organization?

Question

Budgeting, analysis of investment proposals, and provisions of funds are activities associated with what functions inside the organization?

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Solution

These activities are associated with the financial management function inside the organization.

  1. Budgeting: This is a financial activity that involves the creation of a plan to spend your organization's money. This spending plan is called a budget. Creating this spending plan allows you to determine in advance whether you will have enough money to do the things you need to do or would like to do.

  2. Analysis of Investment Proposals: This is another crucial financial management activity. It involves the evaluation of various investment opportunities that the organization has and deciding on the best ones to invest in. This is done by looking at the potential returns of each investment and the risks involved.

  3. Provision of Funds: This involves ensuring that there is enough capital in the organization to meet its needs. This could be done through various ways such as borrowing, issuing shares, or using retained earnings.

All these activities are crucial in ensuring the financial health of the organization and are therefore part of the financial management function.

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