Sub: Financial Management -Class work Date:02.04.

2020
1.What is meant by term financial rule?
Ans:- Financial regulations are laws that govern banks, investment firms, and
insurance companies. They protect you from financial risk and fraud. But they must
be balanced with the need to allow capitalism to operate efficiently

2.Define Financial Management?

Ans:- Financial Management means planning, organizing, directing and controlling
the financial activities such as procurement and utilization of funds of the enterprise.

3.Define Financial engineering?

Ans:- Financial engineering is the use of mathematical techniques to
solve financial problems. Financial engineering uses tools and knowledge from the
fields of computer science, statistics, economics, and applied mathematics to
address current financial issues as well as to devise new and
innovative financial products

4.State three types of financial decisions?

Ans:- Three Types of Financial Decisions are  –
1. Investment Decision. 2. Financing Decision. & 3. Dividend Decision.

5.What are the three functions of financial management?

Ans:-

1. Estimation of capital requirements: A finance manager has to make

estimation with regards to capital requirements of the company. This will
depend upon expected costs and profits and future programmes and
policies of a concern. Estimations have to be made in an adequate
manner which increases earning capacity of enterprise.
2. Investment of funds: The finance manager has to decide to allocate
funds into profitable ventures so that there is safety on investment and
regular returns is possible.
3. Financial controls: The finance manager has not only to plan, procure
and utilize the funds but he also has to exercise control over finances.
This can be done through many techniques like ratio analysis, financial
forecasting, cost and profit control, etc.

6.What is meant by risk management?

Ans:- Risk management is the process of identifying, assessing and
controlling threats to an organization's capital and earnings. These threats,
or risks, could stem from a wide variety of sources, including financial
uncertainty, legal liabilities, strategic management errors, accidents and
natural disasters.