FINANCIAL MANAGEMENT
Money required for carrying out business activities is called
business finance.
Financial management is the activity concerned with planning,
raising, controlling and administering of funds used in the
business.
Objectives:
1. Primary objective-
Wealth maximization
Wealth of shareholders =number of share x
market price per share
2. Other objectives-
Procurement of adequate funds
Ensure effective utilization
Ensure safety of funds
, d e c isio n s
F in a n c ia l
Financing decision
Investment
decision
Dividend decision
FINANICING DECISION
Stage 1: Financial Planning
Estimating fund requirements
Specifying the sources of funds
Steps-
1. Determination of financial objectives
2. Formulation of financial policies and rules
3. Forecasting the needs of finance
4. Developing alternative sources of finance
5. Selection of best alternative
6. Implementing financial plans and policies
Money required for carrying out business activities is called
business finance.
Financial management is the activity concerned with planning,
raising, controlling and administering of funds used in the
business.
Objectives:
1. Primary objective-
Wealth maximization
Wealth of shareholders =number of share x
market price per share
2. Other objectives-
Procurement of adequate funds
Ensure effective utilization
Ensure safety of funds
, d e c isio n s
F in a n c ia l
Financing decision
Investment
decision
Dividend decision
FINANICING DECISION
Stage 1: Financial Planning
Estimating fund requirements
Specifying the sources of funds
Steps-
1. Determination of financial objectives
2. Formulation of financial policies and rules
3. Forecasting the needs of finance
4. Developing alternative sources of finance
5. Selection of best alternative
6. Implementing financial plans and policies
