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Define Effective Utilization of Funds

Effective Utilization of Funds: It is just the decision to maximize the return on investment of funds. When finance manager is not capable to raise the return by investing fund in profitable assets or other profitable projects, company’s business will stop just in 2 day. Therefore, finance manager must not know only basics of capital budgeting, other investment decisions and investment analysis however as well should do deep study more than two years in similar field for becoming perfect in it.

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