Final answer:
Daily financial management activities include credit management, inventory control, and the receipt and disbursement of funds. These tasks are essential for managing cash flows and include longer-term financial planning such as capital budgeting and dividend plans.
Step-by-step explanation:
The more frequent daily activities of financial management typically include the following:
- Credit management: This involves assessing the creditworthiness of potential customers and setting the credit terms under which business will be conducted.
- Inventory control: Keeping track of inventory levels to ensure that the company has enough stock on hand to meet customer demand without tying up too much capital in inventory.
- Receipt and disbursement of funds: Managing the flow of money into and out of the company, including the processing of receipts and payments.
These activities are crucial as they help in managing the company's cash flows and ensuring that there is enough money coming in to cover expenses such as the sale of stocks and bonds, which is a way businesses can raise financial capital. The activities also include longer-term planning such as the establishment of capital budgeting plans to invest in projects that will generate future profits and making decisions about the establishment of dividend plans to return value to shareholders.
All these activities require careful planning to balance income and expenditures. By keeping a proper budget, utilizing investment strategies, and managing financial assets, organizations can ensure that they are able to sustain operations and grow over time.