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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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