Why is the concept of self-financing an important concept for company executives?

generating enough income to finance itself.

Self-financing is better for the following reasons:lower costless dangerousReflects the efficiency of managing the assets of the company

Thanks for the invitationagree with mr. abdalla

 it is  least risky  compared to the external one  that may be not paid  based on sudden conditions of a firm

Thanks for your invitation, Self financing taking consideration not affecting the working capital as regards to company executives, will save the financing cost which will affect the positively the income, also will help effectively controlling the balance sheet structure & effectively controlling & utilizing the cash.

• Protection against unforeseen personal events, as well as events in the wider economies
• Transference of family wealth across generations (bequests and inheritance)
• Effects of tax policies (tax subsidies and/or penalties) on management of personal finances
• Effects of credit on individual financial standing
• Development of a savings plan or financing for large purchases (auto, education, home)
• Planning a secure financial future in an environment of economic instability

Self-financing is the extent to which the institution can finance itself in order to resort to new investments based on the exploitation of surplus operating activities, or the group of real flows of the activity of the institution. It helps to provide a financial margin of safety to finance the necessary needs, including dividends. 03 levels: maximum self-financing related to the state of the institution when it comes to investment and tries to increase its production capacity and obtain an additional share of the market - self-financing stable and resorted to in the case of maintaining the levels of production usual due to the stability of the market - financing Near the self, which means that the institution may resort to it if they suffer from constant deterioration and want to withdraw from the investment process due to the fact that the profits have been depreciated (distributed)

Thanks for invitation,

Self- financing as a concept for executives represents the cheapest source of finance that minimizing cost of finance for the organization.  

The Correct and Best Answer added by: teresah njoki  Customer Service Representative /ممثلة خدمة عملاءDepuis 13 jours