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

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

Write discussion on Importance of financial management
Your posts are moderated
Related Questions
Q. Explain Economic Order Quantity? Economic Order Quantity (EOQ):- Economic order quantity (EOQ) is that quantity of material for which each order must be placed. Purchasing l

Interlinkage in the Financial Markets - Common Features The interlinkage present in the financial markets is essentially due to the fact that all these markets are in the proce

Steps involved in the Process of Securitization The following are the major steps involved: The lender (also called the originator) - in th

As of November 1, 1999, the exchange rate in between the Brazilian real and U.S. dollar is R$1.95/$. The agreement forecast for the U.S. and Brazil inflation rates for the next 1-y

A debt obligation that is issued and traded both in the US bond market and the Eurobond market is referred to as global bond. For an entity to issue global bonds,

Strategies of Hedge Funds: Hedge funds use a range of different strategies, and each fund manager can argue that he or she is unique and could not be compared to other manager

Expalin about the Non-Convertible Debentures (NCDs) NCDs are plain debenture securities issued by corporations. They are normally medium term in nature, maturing between 1 to 8

S&P CNX 500 Here, the stocks are included as per their respective market capitalization. It includes companies which lead in their respective industry sector. They should close

Q. Credit control - account receivable management? Once credit has been established it is important to review outstanding accounts on a regular basis so overdue accounts can be

Critical investment decisions may be taken based on the ratings offered by the credit rating agency. In order to ensure that the rating leads to good investment d