GASPRO International Journal of Eminent Scholars

                                                    ABSTRACT

This paper seeks to examine the role of financial functions on Business Organisation in Nigeria Private Sector and proffers solution. The basic objective of the financial function is to assist management in formulating financial policies so that the most effective used is made of its financial resources. The financials function is to assist the company to make the best use of funds at its disposal and select the most favourable sources of additional funds to finance future activities. This ratio shows how effectively the operating assets of firm have been played in generating profit. It is calculating on return on investment. This is the most important profitability ratio because it is a measure of the operational efficiency of the firm, capital employed is equal to owner’s equity plus long term debt and equals to total assets.   It will explore the problem of poor financial management in the private sector economy and sources of information for financial analysis and planning; such variables as performances, sales, expenses, profits, assets and liabilities. The study highlights the impacts and expresses their findings in numerical terms, thus can be communicated to individual, management and all interested parties based on balance sheet reports. The quest for adequate return on capital employed is the reason why people invest their money in any business venture. Therefore, if the return on capital employed is less than the interest rate, this is unsatisfactory. The capital employed is taken as the excess of total assets over current liabilities. The paper opines that, analysis of financial statement which includes sources and the level of financial investment should be made public. The paper adopted empirical review method by contacting texts and relevant journals. The paper concludes that, the role of Financial Functions of Business Organization in Nigeria Private Sector should show the sources of fund for proper evaluation and monitoring.

KEYWORDS: Business Organization, private sector, statement of financial position, liabilities.