Financial Management
According to Joseph and Massic “Financial
Management is the operational activity of a business i.e. responsible for obtaining
and effectively utilizing the funds necessary for efficient operation”.
According to Ezro Solomon“Financial
Management is concern with the efficient use of economic resource namely
capital funds.”
Meaning of Financial Management
Form the above definition it is clear
that financial management refers to those activities or efforts which are put
in order to manage the finance in the best possible manner. This will help us
to promote and maintain efficient profits which results in sound financial
position of the firm or organization.
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| FINANCIAL MANAGEMENT |
Objectives and Goals of Financial Management
§ Maximization of Profit
§ Maximization of Wealth
§ Maintenance of adequate liquid assets of the firm
§ Ensuring maximum operations efficiency through utilization of fund.
§ It helps in building up of adequate resource of finance, growth and
expansion
§ It helps to have fair and maximum returns to shareholders
§ In helps to maintain the financial discipline by promoting
efficient utilization of resources.
Functions of Financial Management
§ It helps to satisfy the forecasting financial need of the firm or
organization.
§ It helps to administrating the flow of cash
§ Floating of securities
§ It helps to make adequate arrangement for short term loans or
borrowings.
§ It helps to have a good relation with the financial institutions
and investments
§ It helps to manage the credit and debts of the firm or
organization.
§ By proper and efficient management of finance it promotes
protection of funds and securities.
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