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Introduction to Financial Management:

Financial Management indicates that how to manage funds. It means the funds of a company must be procured properly. In addition, balance cost, control consideration and risk must be balanced in a proper way. It is very important to notice this balance and finance manager do this task. Short terms, as well as long terms credits, are also related to this topic.

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What are the different objectives of Financial Management?

The different objectives are as follows –

  • Basic objectives
    • Profit Maximization
    • Wealth Maximization
    • Maintenance of Liquid Assets
  • Other objectives
  • Fair return to Shareholders
  • Expansion and growth reserves must be built up
  • Financial discipline must be followed in the firm
  • Utilization of finance must be effective

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What are the different scopes of Financial Management?

The various scopes are as follows –

  • Proper estimation of Financial requirement
  • Taking decision about Capital Structure
  • Selection of Financial Source
  • Selection of Investment Pattern
  • Implementation of Financial Controls
  • Utilization of surpluses in a proper way

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