Scribd
Upload
37 views7 pages

Finance Management

Financial management involves planning, raising, controlling, and administering funds used in business. It determines how to acquire and allocate financial resources to achieve organizational goals. The objectives of financial management are to maximize profit, returns, and wealth. Its scope includes estimating funding needs, raising funds from various sources, investing funds both long and short term, managing working capital, providing returns to stakeholders, repaying lenders, maximizing shareholder wealth over time, and increasing financial strength. Key functions are making investment, financing, and dividend decisions.

Uploaded by

Sumanta Kumar Biswal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
37 views7 pages

Finance Management

Financial management involves planning, raising, controlling, and administering funds used in business. It determines how to acquire and allocate financial resources to achieve organizational goals. The objectives of financial management are to maximize profit, returns, and wealth. Its scope includes estimating funding needs, raising funds from various sources, investing funds both long and short term, managing working capital, providing returns to stakeholders, repaying lenders, maximizing shareholder wealth over time, and increasing financial strength. Key functions are making investment, financing, and dividend decisions.

Uploaded by

Sumanta Kumar Biswal
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 7

WHAT IS FINANCE ?

Finance is a science of money.

Finance is the activity which concerned with the planning, raising, controlling and administering of the funds used in the business.

WHAT IS FINANCIAL MANAGEMENT


Financial management is that managerial activity which is concerned with the planning, controlling of the firms financial resources The ways and means of managing money. This statement can be further expanded to define F.M. the determination, acquisition, allocation and utilization of the financial resources with the aim of achieving the goals and objectives of the organization. According to Archer and Ambrosia: Financial management is the application of the planning and control functions to the finance functions.

Objectives of financial management


1. Maximization of profit. 2. Maximization of relation 3. Maximization of wealth

Scope of financial management


Ability to do or achieve something

Estimate the total requirements of funds for a given period Raise funds through various sources both national & international keeping in mind the cost effectiveness Investing the funds both long term as well as short term capital needs. Funding day to day working capital requirements of business . satisfactory returns to the all stake holders. Paying interest o borrowings. Repaying lenders on due date Maximize the wealth of shareholders over the long term. Increasing the firms competitive financial strength in the market .

Functions of financial management


Investment Decision Financing Decision Dividend Decision

Investment Decision

Capital Budgeting Working capital management Cost of capital

Financial Management

Financing Decision

Capital structures Leverages Dividend Police Retained Earning

Dividend Decision

You might also like