Document Summary
Financial planning is an important function of a financial manager. Whether the business is big or small, this function has to be performed. A decision about the type of securities to be issued is also an important aspect of financial planning. The term fixed capital stands for that amount of capital which is required for long-term to create production facilities through purchase of fixed assets such as plant, machinery, land, building, furniture etc. These assets represent that part of firm"s capital which is blocked on a permanent or fixed basis. Working capital refers to that part of the firm"s capital which is required for financing short-term or current assets such as cash, marketable securities, debtors and inventories. The return on investment can be compared over a period of time as well as with that of other similar concerns. Roi is used to measure the overall efficiency of a concern.