Marketing S.S.S 3 First Term

WEEK 5

Purchase, Supply, and Merchandizing of goods and services Cont.

Performance Objectives

Students should be able to:

1. Explain fund management

Content

1. Fund management

Fund Management

Fund management can be defined as "the part of overall management devoted to the effective and efficient investment, financing, application and control of an organisation's resources(finance) and for the attainment of the following specified objectives which are the reasons or motives to hold money:

(a) Transaction motive: This refers to the company's demand for money for the cost incurred for the day to day running of the business otherwise known as variable costs such as expenses on fuel and raw materials

(b) Precautionary motive: This connotes the money held by a business establishment as a result of unforeseen circumstances that may occur in the production process. Example include money set aside for unexpected breakdown of equipment, repair and.... View More