Financial Management

14158 Words Mar 15th, 2011 57 Pages
FINANCIAL MANAGEMENT – AN OVERVIEW
Unit structure: 1. Introduction 2. Learning objectives 3. Section title
Meaning
Definition
Objective
Advantages of wealth maximization
Criticisms of wealth maximization
Scope & Functions of Financial Management
Role and function of the finance manager
Financial Management and Economic
Financial management and Accounting
Evolution of financial management
Functional areas of financial management
Financial decisions
Have you understood questions
Summary
Exercises
References
Financial Management - AV OVERVIEW

Meaning - Objectives of Financial Management- ‘A’s of Financial Management - Scope and Functions of Financial Management - Role and Functions of the Financial
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Planning is one of the most important activities of the financial manager. It makes it possible for the financial manager to obtain funds at the best time in relation to their cost of the conditions under which they can be obtained and their effective use by the business firm. Financial management is the dynamic, evolving or making of day- to-day financial decisions in a business of any size. The old concept of finance as treasurer ship has broadened to include the new, equally meaningful concept of controllership. While the treasurer keeps track of the moneys, the controller’s duties extend to planning analysis and the improvement of every phase of the company’s operations, which are measured with a financial yardstick. Financial management is important because it has an impact on all the activities of a firm. Its primary responsibility is to discharge the finance function successfully. It touches on all the other business functions. All business decisions have financial implications, and a single decision may financially affect different departments of an organisation. In this connection, Raymond Chambers observes: “Financial management maybe considered to be the management of the finance function. It may be described as making decisions on financial matters and facilitating and reviewing their execution. It may be used to designate the field of study which lies beneath these processes”. Financial

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