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financial management
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if an entrepreneur has to act as a financial manager then he has to take all financial related decisions and perform all financial functions . he has to plan how required funds for the company can be raised and allocate such funds into various business activities like production,marketing , distribution etc. he has to continuously monitor and control the outflow and inflow of funds in the company . he is responsible for how efficient and effectively funds are used in the company that can help for shaping the fortune the company. financial management is basically managerial activity that focuses on managing utilisation of  the funds provided by shareholders of the company . generally 3 major decisions has to be taken by entrepreneur while being a financial manager they are as follows :

  1.  investment decisions - this decision is taken regarding utilizing and investing company 's funds in different assets (long term assets and short term asset ) and projects of the company .
  2. financing decisions - this decision is related to choosing the sources of finance which suits the fund requirement of the company . a proper capital budgeting is done by the manager and decide the ratio of debt and equity in its capital .
  3. dividend decision - it decides what proportion of profits earned by the company should be distributed as divided and what proportion it should be kept aside as retained earnings .

Credit rating agencies take many factors into consideration when they provide credit rating to an entity. The agency considers the entity’s past history of borrowing and financial obligations. It leaves a negative impact on rating if there are default loans or missed payments. If it seems that in the near future, entity can be economically efficient, the credit rating will be higher but if their borrowings will be negative then the credit rating will be low.A high credit score indicates a stronger credit profile and will generally result in lower interest rates charged by lenders. There are many factors that are taken into account for an individual’s credit score including payment history, amounts owed, length of credit history, types of creit and new credit. Credit factor can be better explained in the credit report.

A short-term credit rating reflects the behaviour of the borrower within a year. This type of credit rating has become the norm in recent years. Long-term credit ratings were more considered in the past. Long-term credit ratings predict the borrower’s of borrower of defaulting in future.

Credit rating is an unbiased and independent opinion as to issuer's capacity to meet its financial obligations. It shows the creditworthiness of the borrower for a debt. Credit rating agencies does assessment and evaluation for company's amd government such as Moody's, Standard and Poor etc. Enterprise pay these credit agencies for their debt issues or for getting a rating for itself. Rating given by agencies is based on information they have of the company. Credit rating can be provided by more than one agency. Rating process takes time as agencies have to gather the related information and then have to decide which rating they can give. There are many factors which affect credit rating such as nature of industry, project risk, market position etc. A credit rating not only determines whether or not a borrower will be approved for a loan, but it determines the interest rate at which loan will need to be repaid. Many companies depend on loans for many start-up and other expenses,not being approved a loan could spell disaster, and a high interest rate is much more difficult to pay back. A poor credit rating is a risky investment; it indicates a larger probability that the company will be unable to make its bond payments. Credit ratings are never static, in fact, they change all the time based on the newest data, and one negative debt will bring down even the best score. An enterprise with a good credit but shorter credit history is not good... (More)