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 Accept-Reject Criteria? Accept-Reject Criteria:- If actual ARR is elevated than the predetermined rate of return .......................Project would be accep


In modern strategic management accounting it is important to use appropriate performance measurements and control concepts, underpinned by theories and models applied in a variety

What to do to maximise profits of the company If you want to maximise profits, there are only two methods to do it. Either you decrease your expenses (also known as costs) or y

Saven Travel Corporation is considering several investment opportunities in order to diversify its operations. Mr. Saven, president, is trying to determine the firm''s cost of capi

Purpose of research: The aims of this research are to examine the effectiveness of speculation on efficiency of Petrochemical sector in Saudi Arabia financial market"TADAWUL".

SUGGESTION REGARDING CREDIT LIMIT. SHOULD IT BE APPROVED OR NOT, WHAT SHOULD BE THE AMOUNT OF CREDIT LIMIT THAT ELECTRONICS GIVE TO BOOTH PLASTICS

Evaluation of change in credit policy Current average collection period = 30 + 10 = 40 days Current accounts receivable = 6m × 40/ 365 = $657534 The Average collection pe

There are two important term structure theories related to the shapes of the yield curve. First is the Expectations Theory and the second is Market Segmentations

Credit analysis is the financial analysis used for determining the creditworthiness of an issuer using various quantitative and qualitative factors. The four Cs an anal