Please forward this error screen to 69. Unsourced material may be challenged and removed. It is financial management for small business pdf specialized function directly associated with the top management. The significance of this function is not seen in the ‘Line’ but also in the capacity of ‘Staff’ in overall of a company.
It has been defined differently by different experts in the field. It includes how to raise the capital and how to allocate capital, i. It also deals with the dividend policies of the share holders. Planning is an inextricable dimension of financial management. The term financial management connotes that funds flows are directed according to some plan.
Financial management is that activity of management which is concerned with the planning, procuring and controlling of the firm’s financial resources. Financial Management is the Operational Activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operation. Business finance deals primarily with rising administering and disbursing funds by privately owned business units operating in non-financial fields of industry. Financial Management is an area of financial decision making, harmonizing individual motives and enterprise goals.
Financial management is the area of business management devoted to a judicious use of capital and a careful selection of sources of capital in order to enable a business firm to move in the direction of reaching its goals. Financial management is the application of the planning and control function to the finance function. Financial management may be defined as that area or set of administrative function in an organization which relate with arrangement of cash and credit so that organization may have the means to carry out its objective as satisfactorily as possible. Business finance can be broadly defined as the activity concerned with planning, raising, controlling and administering of funds and in the business. Financial management is a body of business concerned with the efficient and effective use of either equity capital, borrowed cash or any other business funds as well as taking the right decision for profit maximization and value addition of an entity. Financial management refers to the proper and efficient use of money and it plays a significant role in analyzing to invest in profitable business enterprise. Return on Investment must be greater than the invested amount.
Financial management refers to the effective and efficient management of money and it is also process of planning, controlling,leading, directing of a firm’s financial resources. This is the main objective of Financial Management. Wealth maximization means maximization of shareholders’ wealth. It is an advanced goal compared to profit maximization. Survival of company is an important consideration when the financial manager makes any financial decisions. One incorrect decision may lead company to be bankrupt. It is necessary for operations to pay the day-to-day expenses e.