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Financial Management

What is Financial Management

• Is the activity concerned


with the CONTROL and
PLANNING of financial
resources
Classification of Finance Function

•Long Term Finance


•Medium Term Finance
•Short Term Finance
Objectives of Finance Functions

•Investment Decisions
•Financing Decisions
•Dividend Decisions
•Liquidity Decisions
Why Business Needs the Finance Functions

•Helps Establish a Business


•Helps Run a Business
•To Expand, Modernize, Diversify
•Purchase Assets
Importance of Finance Functions

• Identify Need of Finance


• Identify Sources of Finance
• Comparison of Various Sources of
Finance
• Investment
Finance Functions Involves

• Ensure enough funds at reasonable cost


• Ensure safety of funds
• Ensure efficient effective and profitable
utilization of funds
• Ensure that finance funds don’t remain idle

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