ABSTRACT
This chapter discusses working capital requirements. Financial managers use capital-budgeting techniques to evaluate proposed investments in long-term assets. Capital budgeting is the process by which long-term investments are generated, analysed, and placed in the capital budget. Currency or foreign exchange risk is often classified as either transaction exposure, economic exposure or translation exposure. Transaction exposure is the risk of unfavourable exchange rate movements affecting known commitments in foreign currency. Credit risk management deals with the identification, quantification, monitoring, controlling, and management of credit risk. Financial management is focused on the acquisition, management and financing of resources in order to maximise the firm’s value. Visionplanner gives the possibility to plan for maximal fifteen years. It is also possible to prepare a request for financing in detail. Market risk is the exposure to potential loss that would result from changes in market prices or rates.
