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
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Date
1991-01
Authors
OKOH, MICHAEL ALI
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Abstract
viii
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;
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(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.
Description
DEPARTMENT OF ECONOMICS,
FACULTY OF ARTS AND SOCIAL SCIENCES,
AHMADU BELLO UNIVERSITY, ZARIA
Keywords
FINANCIAL,, MANAGEMENT,, PRACTICES,, MANUFACTURING FIRMS:,, CASE,, STUDY,, NEW NIGERIA,, TIMBER,, COMPANY,, BENUE STATE.