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What is financial management? Define objectives and scope of financial management.
Financial management is the set of activities concerned with planning, organising, directing and controlling the financial activities. Financial management accepts the general management principles for financial performances. Financial management acts like a guidance, where more investment opportunities are available.
Scope of financial management
The scope of financial management is given below −
- Estimating the requirement of funds.
- Determining the capital structure.
- Investment fund.
- Maximise profits.
- Maintain core value of organisation.
- Dividend for shareholders.
- Retain profits.
Objectives of financial management
The objectives of financial management include −
- Profit maximisation.
- Wealth maximisation.
- Optimum funds utilisation.
- Ensure safety on investment.
- Sound capital structure.
Functions of financial management
The functions of financial management are as follows −
- Estimation of capital requirements.
- Determination of capital composition.
- Choice of source of funds.
- Issue of shares and debentures.
- Loans to be taken from banks/financial institutions.
- Public deposits in form of bonds.
- Investment of funds.
- Disposal of surplus.
- Management of cash.
- Financial controls.
- What is nature and scope of financial management?
- Define financial statement analysis in financial management.
- Define the components of financial management
- Define capitalisation and its type in financial management.
- Define equity shares used in financial management.
- Define preference shares used in financial management.
- Define concept of Debt securitisation in financial management.
- What is Risk Preference? (Financial Management)
- Define financial objectives of an organisations.
- Compare accounting and financial management.
- What is international factoring in financial management?
- Write about Financial breakeven in financial management.
- What are key decisions of financial management?
- Explain about various financial statements in financial management.
- Explain the importance of financial management.