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40 Corporate Finance BRILLIANT’S
(e) Derivative instruments like options and (e) S>o[ado{Q>d BÝñQ¯>_oÝQ²>g O¡go Am°ßeZ VWm â`yMg© H$mo
futures have been introduced. B§Q´>moS²>`yg {H$`m J`m&
As a result of the above changes, the job of CnamoŠV n[adV©Zm| Ho$ n[aUm_ñdê$n, \$m`Z|{e`b
financial manager has become more complex _¡ZoOa H$s Om°~ Am¡a A{YH$ H$m°åßboŠg VWm {S>_m§qS>J hmo
and demanding. Though the focus on value
maximization continues but two other trends JB©& `Ú{n d¡ë`y _¡pŠO_mBOoeZ na \$moH$g ~Zm hþAm Wm,
are becoming more and more important: Xmo AÝ` Q´>oÝS²>g A{YH$ _hÎdnyU© hmo J`o…
(1) The globalization of business. (1) {~OZog H$m ½bmo~bmBOoeZ
(2) The increased use of information (2) BÝ\$m°_}eZ Q>oŠZmobm°Or H$m ~‹T>Vm Cn`moJ&
technologies.
Both of these trends provide new BZ XmoZm| Q´>|S²>g Zo bm^Xm`H$Vm ~‹T>mZo VWm [añH$ H$_
opportunities to increase profitability and H$aZo Ho$ {bE Z`o Adga àXmZ {H$E& hmbm§{H$ BZ \¡$ŠQ>g©
reduce risk. However, these factors are also go H$m°pån{Q>eZ VWm ZB© [añH$ ^r ~‹T>r h¡& ~¢H$ VWm
leading to increase in competition and new risks. ES>dQ>m©BqOJ EOoÝgrO g_oV g{d©g àmodmBqS>J H§$nZrO H$mo
Service providing companies including banks
and advertising agencies are forced to be global ½bmo~b hmoZo Ho$ {bE {dde {H$`m Om ahm h¡ Š`m|{H$ Eogr
because such firms can serve their multinational \$åg© AnZo _ëQ>rZoeZb ŠbmB§Q²>g H$mo V^r gw{dYm Xo nm`oJr
clients only if they have world wide operations. O~ CZH$m g§MmbZ d¡pídH$ ñVa na hmo&
Changes in technology provide both Q>oŠZmobm°Or _| n[adV©Z go Adga VWm IVao XmoZm|
opportunities and threats. Improved techno- CËnÝZ hmoVo h¢& CÝZV Q>oŠZmobm°Or H$m°ñQ> H$_ H$aZo VWm
logy is helpful for the companies to reduce costs _mH}$Q> EŠgnmÝS> H$aZo _| ghm`H$ hmoVr h¡ qH$Vw Bggo A{V[aŠV
and expand markets but it has also introduced
additional competition which may reduce à{VñnYm© {Z{_©V hmoVr h¡ Omo {dÚ_mZ _mH}$Q> _| àm°{\${Q>{~{bQ>r
profitability in the existing markets. As a H$_ H$a gH$Vr h¡& n[aUm_ñdê$n \$m`Z|{e`b _¡ZoOa H$s
result, the next generation of financial AJbr nr‹T>r H$mo H$åß`yQ>a VWm boQ>oñQ> Q>oŠZmobm°Or H$m n`m©ßV
managers must have sufficient knowledge of kmZ hmoZm Amdí`H$ h¡& {S>grOZ _oqH$J Ho$ {bE [a`b Q>mB_
computer and latest technology. They should
also possess quantitative skills to analyze data ~o{gg na S>mQ>m EZmbmBO H$aZo Ho$ {bE Šdm§{Q>Q>o{Q>d pñH$ëg
on a real time basis for decision making. CZHo$ nmg hmoZm Oê$ar h¡&
FINANCIAL PLANNING AND FORECASTING / \>m`Z|{e`b ßbmqZJ VWm \$moaH$mpñQ>¨J
Q.4. What is Financial planning? Write the steps for making a financial plan.
\$m`Z|{e`b ßbmqZJ Š`m h¡? EH$ \$m`Z|{e`b ßbmZ ~ZmZo H$s à{H«$`m Ho$ MaU {b{IE&
OR
What are the benefits of financial planning in an organization?
EH$ Am°J}ZmBOoeZ _| \$m`Z|{e`b ßbmqZJ Ho$ bm^ Š`m h¢?
OR
What is Financial Forecasting? What are its objectives?
\$m`Z|{e`b \$moaH$mpñQ>¨J Š`m h¡? BgHo$ CÔoí` Š`m h¢?
OR
State the steps to be followed for financial forecasting.
\$m`Z|{e`b \$moaH$mpñQ>¨J Ho$ {bE nmbZ {H$`o OmZo dmbo MaU ~VmB`|&