Abstract:
Managing the financial affairs of a direct marketing operation includes:
• Raising capital
• Identifying financial objectives and creating plans to achieve them
• Budgeting for the future flow of cash receipts and disbursements (cash
management)
• Controlling the use and distribution of funds
• Protecting the operation’s assets
Capital comes from two basic sources:
• Equity capital (also known as ownership capital) is from savings, gifts, and inheritances
• Debt capital is borrowed from lenders or from lessors through long‑term
lease arrangements.
