THE ROLE OF FINANCIAL MANAGEMENT IN A CO-OPERATIVE ORGANIZATION A CASE OF STUDY OF UNION BANK PLC ENUGU

CHAPTER ONE

1.0 INTRODUCTION

Financial management involves all the activity of the financial managers concern with the rising of capital lining cash and credit requirement including the effective control of financial resources The activity could be suggested as follows; 1. Converting forecast into planned and budget 2. Planning the appropriate capital structure 3. Raising cash flow outside the business 4. Forecasting the future 5. Investing surplus fund 6. Controlling the cash balance and flow in accordance with plans and with changing circumstance. 7. With the emergency of finance as a separate field emphasis was more or less on legal matters such as mergers FORMATION OF NEW COMPANY DISPOSAL AND CONSOLIDATION With the most vital problem of the firm was identification of the means for raising capital for possible expansion due to the increasing wave in industrialization. The mobility of fund from the Areas of surplus to the areas of scarcity posed a lot of problem.

Because of the radical changes which ochre during the depression of 1930 which culminated into the failure of many business finance which re-directed to bankruptcy, reorganization and liquidity for profitability under the imperfect perfect competition continues to be the motivation to maximize the profit and wealth of the owner. To ague to maximize profit has led to he study of financial management of which attribute factor can be socialized as follows; 1. Saving 2. Business growth 3. Inflation 4. Competitive Base on the above background, some through was giving a financial management to provide skillful planning control and execution of financial management activity. The practicing managers are interested in this study because among the most crucial decision of the firm are of those which relates to the financial matters and so are giving better treatments for better understanding of financial management which provide them with conceptual and annalistically insight on the capital fund and using the capital fund are called financial function of any firm.

GOALS AND OBJECTIVE OF THE FINANCIAL MANAGERS

Financial which is the life wire of any business and as developed in 1900 since it concerns the actual flow of money as well as any claim against money.