Financial management, Financial Management

What is Financial Management? Anybody can describe it.

Posted Date: 2/13/2013 4:15:21 AM | Location : United States





Meaning of Financial Management

The meaning of Financial Management is organizing, planning, directing and controlling the financial activities like procurement and use of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.

Scope or Elements of Financial Management

1. Investment decisions involves investment in fixed assets (called as capital budgeting). Investment in current assets is as well a part of investment decisions called as working capital decisions.

2. Financial decisions - They relate to the raising of finance from several resources which will depend on decision on kind of source, period of financing, cost of financing and the returns thereby.

3.Dividend decision - The finance manager has to take decision along with to the net profit distribution. Net profits are usually divided into two:

a. Dividend for shareholders- Dividend and the rate of Dividend has to be decided.

b. Management: Cash is needed for many purposes like payment of salaries and wages and payment of electricity and water bills, meeting current liabilities, payment to creditors, maintenance of enough stock, purchase of raw materials, etc.

Financial controls: The finance manager has not just only to plan, procure and use the funds but he as well has to exercise control over finances. This can be done via several techniques like ratio analysis, cost and profit control, financial forecasting, etc.

Posted by Aliena | Posted Date: 2/13/2013 4:17:34 AM


Related Discussions:- Financial management, Assignment Help, Ask Question on Financial management, Get Answer, Expert's Help, Financial management Discussions

Write discussion on Financial management
Your posts are moderated
Related Questions
Assessing Impact: As with the assessment of likelihood, a valuable way of assessing impact would be the creation of categories of impact as follows: Level

Managerial Finance Functions Need skilful planning, control and execution of the financial activities. There are four significant managerial finance functions. These are as sho

#what are the main points in scope or contents of financial functions#

Due to the complexity of the tasks involved in many projects, communication of responsibility for those tasks is often helped by means of graphical planning techniques.

What are the coupon bonds security instruments? Coupon bonds are contractual agreements by the borrowers to make regular payments (known as coupons or interest) until a specifi

Brandon Michael Chu of Henry Law & Yang Yi Capital Limited believes that earnings and dividends at Alua Amanova & Shuwen Wang Technologies (AST) will continue to grow at 12% per ye

cost of capital, Financial Management The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equ

Q. Explain Net Present Value Method? Net Present Value (NPV) Method: - This process measures the Present value of returns per rupee invested. In this method present value of

When an investor buys a bond in between coupon payments, he is supposed to compensate the seller with the coupon interest earned on the bond from the last coupon

Concepts of Cost of Capital 1. Explicit Cost And Implicit Cost The explicit cost of any source of finance may be described as the discount rate that equates the current v