Basic of Financial Management

                                     
                                              Financial Management

• Financial management is defined as dealing with and analyzing money and investments for a person or a business to help make business decisions. 
• Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
  

Objectives of Financial Management

The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be-

• To ensure regular and adequate supply of funds to the concern. 
• To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders. 
• To ensure optimum funds utilization.
• To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved. 
• To plan a sound capital structure.
  

Functions of Financial Management

• Estimation of capital requirements. 
• Determination of capital composition 
• Choice of sources of funds 
• Investment of funds 
• Disposal of surplus 
• Management of cash