Financial Resources
Financial resources are the set of liquid assets of an organizations. Financial resources are:
- Cash
- Bank deposits
- Stocks
- Bonds
- Foreign currencies holdings
Financial resources are used to carry out the operations of a business and to make long term investments.
Financial resources management should take into account the risk of a shortage of financial resources and it's consequences, and the opportunity cost of having a stock of financial resources. The liquidity of the assets must be taken into account.
The sources of financial resources are mainly:
- Capitalizations: capital contributions or issuance of stocks
- External financing
- Sale of goods and/or services