What are the benefits of traditional approach, Financial Management

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What are the benefits of Traditional approach

Traditional approach had a very narrow perception and was devoid of an integrated conceptual and analytical framework. It had precisely been discarded in current academic literature. Modern approach has broadened the scope of financial management which involves the solution of three key decisions, namely, financing, investment and dividend. These are interrelated and must be jointly taken so that financial decision-making is optimal. Conceptual framework for optimum financial decisions is the objective of financial management. Or we can say, to ensure an optimum decision in respect of these three areas, they must be related to the objectives of financial management.

 


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