Importance of financial management, Financial Management

Importance of Financial Management:

Proper finance is the real key to the success of any business enterprise. Without proper finance no business can survive nor can it be expanded and modernized. It is the finance which works like a "­lubricant which keeps the organization dynamic, keeps men and machine at work. The following are \ the points to highlight the importance of finance.

1) Finance for business promotion

2) Finance management for optimum use of firms

3) Use for co-operation in business activities

4) Useful in decision making

5) Determinant of business success

6) Measurement of performance

7) Basis of planning, co-ordination and control

8) Useful to shareholders and investors

Areas/Scope Financial Management

Financial management, at present is not confined to raising and allocating funds. The study of financial institutions like stock exchange, capital, market, etc. is also emphasized because they influenced under writing of securities & corporate promotion. Company finance was considered to be the major domain of financial management. The scope of this subject has widened to cover capital structure, dividend policies, profit planning and control, depreciation policies.

Posted Date: 2/8/2013 4:51:09 AM | Location : United States

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