When general management principles are applied to enterprise financial resources then it is called financial management. That means it involves planning, directing, controlling and organizing financial activities.
Elements of financial management are investment decisions, financial decisions and dividend decisions.
The objectives of financial management are as follows −
The functions of financial management are as follows −
Factors affecting financial management are explained below −
Company's senior people will work and increase their rapport with regulators and make the business environment effective. Management will set up a department to monitor developments and their effect on their financial activities. Internal auditors also give answers like how to generate profits within the law.
Investors will analyse the solvency of a corporation to determine, whether it is good to invest or not. Financial professionals contribute their intellect and help the firms to operate without having much debt. Financial managers also help in increasing assets.
Positive runs in markets make a corporate firm an investor choice that affects corporate financial strategies. Positive run of markets also tells about a good economic trajectory. There are many exchanges which help the corporate to implement their strategies.
It helps companies to work in short terms, keeping their long-term expansion. Finding the right combination of debt and equity plays an important role in firm success. Failure in accessing the combination may lead to failure. Some of the corporate credits are loans, credit lines, bonds, overdrafts etc.