Financial Management Articles

For the success of any business it is essential to have a sound financial planning. It will provide policies and procedures to achieve close co-ordination between the various functional areas of business. It aims at enabling the business to tackle the reducing uncertanities in respect of the availability and timing ...

Planning refers to pre-determination of what is to be done in future. A financial manager has to formulate plan regarding future financial requirement, its procurement and utilization. The process of estimating the funds requirement of a business and determining the sources of funds is called Financial Planning. It is the ...

The primary aim of financial management is to maximise the wealth of shareholders. Shareholders are interested in wealth maximisation which depends upon the market price of the shares. If the market price of the shares increases, there is appreciation in the shareholders' wealth and vice versa. Thus the major goal ...

Finance is considered to be the life blood of business. Financial management is concerned with procurement and utilisation of funds in a proper way. Therefore, financial management enjoys great importance in an organaisation. Financial management is crucial for the success of a business. Financial management is important because of the ...

The major obective of any business concern is to make profit for its owners by selling goods or services. To reach this goal finance is required. In this context it can be said that finance is the soul of any business concern. Keeping this in view, the proper management of ...

The finance function refers to following three major decisions which the finance manager has to take: 1. Investment Decision 2. Financial Decision 3. Dividend Decision 1. Investment Decision: The first and foremost decision is concerned with the allocation of funds to different investment proposal. This decision relates to the careful selection of assets in ...

Money used for any activity is known as Finance. Every activity whether economic or non-economic, requires money to run it. Almost all business activities require some finance. Finance is needed to establish a business., to run it, to modernise it, to expand, or diversify it. Finance is an important functional ...