Illustrate the nature of financial management, Financial Management

Q. Illustrate the Nature of Financial Management?

Less Descriptive as well as More Analytical: - Financial management is less descriptive and more analytical. Because of the development of new statistical and accounting techniques of financial analysis the financial management chooses the best option out of the many possible alternatives.

Continuous Function: - Financing is an incessant function. Additionally to the raising of finance, there is a continuous requirement for planning and controlling the finances of an enterprise. A firm carry out finance functions continuously in the normal course of the business.

Different from Accounting Function: - There are major difference between the accounting and finance function. Accounting generates information or else data whereas in the finance function the data reanalysed and used for the purpose of decision making.

Wide Scope: - There is broad scope of financial management. It is concerned not merely with the raising of finance but as well with the allocation and efficient use of such finance.

Centralised Nature: - Financial management is essential in nature. It is neither probable nor desirable to decentralize the financial responsibilities.

Measurement of Performance: - Financial management is anxious with the wise use of finance. It fixes certain norms as well as standards against which the benefits of an investment decisions are matched.

Inseparable Relationship among Finance and other Activities: - There exists an inseparable relationship among finance on the one hand and marketing, production and other activities on the other. All other activities are connected to finance.

Applicable to All Kinds of Organisations: - It is applicable to every forms of organization whether corporate or non-corporate such as sole proprietorship as well as partnership firms etc.

Posted Date: 8/3/2013 2:27:51 AM | Location : United States

Related Discussions:- Illustrate the nature of financial management, Assignment Help, Ask Question on Illustrate the nature of financial management, Get Answer, Expert's Help, Illustrate the nature of financial management Discussions

Write discussion on Illustrate the nature of financial management
Your posts are moderated
Related Questions
where you deposit 1000dollars at the end of each year for 4 years, what will be the amount of deposits at the end of each year if it is compounded at 12% semi-annually?

Types of Efficiency    Efficient market theory can be described in three ways: 1) Allocative Efficiency: A market is allocatively proficient when it directs savings tow

Define the in- order-driven according to trade intermediation. In- order-driven markets: In order-driven markets, buyers and sellers trade unswervingly without any intermedi

The potato chip industry in the Northwest in 2007 was competitively structured and in long-run competitive equilibrium; firms were earning a normal rate of return and were competin

Types of Mortgages 1. Traditional Mortgages 2. Non -  Traditional Mortgages 3.  Graduated-Payment Mortgages (GPMs) 4.  Pledged-Account Mortg

Interest rate risk is the risk wherein the investor in bonds faces the risk of a fall in his bond price as and when there is a rise in the market interest r

Illustrate about the Financial Management Individual businesses face problems dealing with acquisition of funds to carry on their activities and with determination ofoptimum

Emily Jill Rogers  is planning to buy a house but needs assistance as to how she will finance the purchase. She has supplied you with some information and asked you to help her wit

Concept and measurement of the cost of capital The evaluation of the worth of a long-term project suggests a certain norm or standard against which benefits are to be judged. R

Consolidations of Merger - amalgamation A consolidation is a combination of two or more companies into a new company. In this form of merger all the existing companies which co