Traditional Approaches
The traditional approach to financial management was popular in the primary stages of its development as a distinguished branch of academic study. Under this approach the role of finance manager was limited to raising and administrating of funds needed by the corporate enterprises to meet their financial needs.
It in broad manner, it addresses the following three aspects:
1. Arranging cash in hand from financial institutions.
2. Arranging cash in hand via instruments as bonds, shares etc.
3. The legal and accounting relationships amongst a business firm and its sources of funds.
The range conventional approach to the range of finance function formulated during the year 1920s and 1930s and prevailed academic intellectual during the 1950s and through the early 1940's. It has now been cast off away as it bears from dangerous restrictions.
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