OTE2601
OCT/NOV PORTFOLIO 2025
UNIQUE NO.
DUE DATE: OCTOBER 2025
,Orientation to teaching Economic and Management Sciences
Table of Contents
1. Introduction ............................................................................................................ 2
2. Estimation of Capital Requirements .................................................................... 2
3. Choice of Sources of Funds ................................................................................. 3
4. Investment of Funds .............................................................................................. 4
5. Management of Cash ............................................................................................. 4
6. Financial Controls ................................................................................................. 5
7. Impact of Financial Management Functions in Business .................................. 6
8. Practical Examples and Scenarios ....................................................................... 6
9. Application of Financial Management Concepts, Theories, and Tools ............ 6
10. Conclusion ........................................................................................................... 7
11. References ........................................................................................................... 7
, 1. Introduction
Financial management is one of the most critical aspects of ensuring the sustainability
and growth of a startup. As the newly appointed financial manager of a young company
aiming to expand operations and increase profitability, my responsibility is to
strategically apply the five key financial management functions: estimation of capital
requirements, choice of sources of funds, investment of funds, management of
cash, and financial controls.
Each function plays a unique role in guiding decision-making, ensuring financial
stability, and supporting long-term profitability.
2. Estimation of Capital Requirements
Definition:
Estimation of capital requirements refers to calculating how much money the company
needs for short-term and long-term operations.
Application in a Startup:
Assess initial costs such as purchasing equipment, leasing office space, hiring
staff, and marketing.
Forecast working capital needs (day-to-day expenses like salaries, rent, raw
materials).
Consider expansion goals (e.g., opening branches, launching new products).
Why it matters:
Accurate estimation prevents undercapitalization (lack of funds) and overcapitalization
(idle funds leading to waste).
OCT/NOV PORTFOLIO 2025
UNIQUE NO.
DUE DATE: OCTOBER 2025
,Orientation to teaching Economic and Management Sciences
Table of Contents
1. Introduction ............................................................................................................ 2
2. Estimation of Capital Requirements .................................................................... 2
3. Choice of Sources of Funds ................................................................................. 3
4. Investment of Funds .............................................................................................. 4
5. Management of Cash ............................................................................................. 4
6. Financial Controls ................................................................................................. 5
7. Impact of Financial Management Functions in Business .................................. 6
8. Practical Examples and Scenarios ....................................................................... 6
9. Application of Financial Management Concepts, Theories, and Tools ............ 6
10. Conclusion ........................................................................................................... 7
11. References ........................................................................................................... 7
, 1. Introduction
Financial management is one of the most critical aspects of ensuring the sustainability
and growth of a startup. As the newly appointed financial manager of a young company
aiming to expand operations and increase profitability, my responsibility is to
strategically apply the five key financial management functions: estimation of capital
requirements, choice of sources of funds, investment of funds, management of
cash, and financial controls.
Each function plays a unique role in guiding decision-making, ensuring financial
stability, and supporting long-term profitability.
2. Estimation of Capital Requirements
Definition:
Estimation of capital requirements refers to calculating how much money the company
needs for short-term and long-term operations.
Application in a Startup:
Assess initial costs such as purchasing equipment, leasing office space, hiring
staff, and marketing.
Forecast working capital needs (day-to-day expenses like salaries, rent, raw
materials).
Consider expansion goals (e.g., opening branches, launching new products).
Why it matters:
Accurate estimation prevents undercapitalization (lack of funds) and overcapitalization
(idle funds leading to waste).
