FINANCIAL MANAGEMENT PRACTICES IN MANUFACTURING FIRMS: A CASE STUDY OF THE NEW NIGERIA TIMBER COMPANY (N.N.T.C.) BENUE STATE

FINANCIAL MANAGEMENT PRACTICES IN MANUFACTURING FIRMS: A CASE STUDY OF THE NEW NIGERIA TIMBER COMPANY (N.N.T.C.) BENUE STATE

ABSTRACT

The successful management of any business enterprise depends on the ability to recognize the inter-dependence of the operating and capital elements of the business structure, and to achieve a balanced financial control of the operations. To reach this point, there must be, first, the role of financial management and the nature of invested capital must be fully understood by those having the authority for decision making; secondly, the cost of capital employed in the business must be defined and translated into some specific objectives for profits that will provide an adequate return on invested capital; thirdly, operating targets must be established for the management of capital turn-over and for the management of profit rates that will support these basic objectives. To be able to maintain an orderly balance between these several elements, management must clearly identify the inter-relationship between capital and profit, and must develop an operating plan which fully recognizes the inter-dependence of the operating decisions themselves. This study examines financial management practices in manufacturing industries in Benue State with special focus on New Nigeria Timber Company. Financial management is being seen as the crucial factor in the growth and development of industries. An attempt has, however, been made to: (i) review the types of management, objectives, and the impact of financial management; (ii) define the relevant environments and suggest various approaches to evaluate corporate financial management and; ix (iii) discuss some quantitative techniques applicable to financial management practices. Financial management has been observed as an important aspect of corporate management. This is as a result of significant role financial management plays in the determination of success or failure of any industry. In this study, adequate descriptions of what approaches, methods and techniques are available in establishing sound financial management have been given. The methods discussed do not apply to only one firm. Definiately, the findings of the study will enhance not only NNTC but any similar industry operating with the same conditions; for, results have given an insight on how, when and why to control financial resources for effective, efficient and satisfactory management. It should, however, be noted that a combination of approaches are often the most appropriate approach which can lead to successful financial management.

FINANCIAL MANAGEMENT PRACTICES IN MANUFACTURING FIRMS: A CASE STUDY OF THE NEW NIGERIA TIMBER COMPANY (N.N.T.C.) BENUE STATE

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