Financial Management
Meaning and Definition
Finance is scares. It is also the most important aspect of a business. Therefore, finance requires
proper planning and control to achieve the objectives of the business. This gives birth to
financial management as a separate discipline. Financial management simply means
management of finance. To define financial management , we should define two terms- finance
and management. Finance refers to money or finance available to a firm. Management means
planning , organising, directing and controlling financial activities in a business enterprise.
In the words of P.G.Hastings, “Financial management is the art of raising and spending money.”
According to Raymond Chambers, “Financial management may be considered to be the
management of the finance function.”
In the words of Archer and Ambrosio “Financial management is the application of the planning
and control function to the finance function.”
According to Joseph and Massie, “Financial management is the operational activity of a
business that is responsible for obtaining and effectively utilising the funds necessary for
efficient operations.”
To conclude financial management is concerned with the management of the finance for the
smooth running and successful achievement of the objectives of the enterprises. It is the art
and science of using , managing, and controlling the business money. It is the management and
control of money and money-related operations within a business.
Characteristics of Financial Management
Management of money.
Financial planning and control.
Determination of business success.
Focus on descition making.
Centralised in nature.
Continuous administrative function.
Multidisciplinary.
Meaning and Definition
Finance is scares. It is also the most important aspect of a business. Therefore, finance requires
proper planning and control to achieve the objectives of the business. This gives birth to
financial management as a separate discipline. Financial management simply means
management of finance. To define financial management , we should define two terms- finance
and management. Finance refers to money or finance available to a firm. Management means
planning , organising, directing and controlling financial activities in a business enterprise.
In the words of P.G.Hastings, “Financial management is the art of raising and spending money.”
According to Raymond Chambers, “Financial management may be considered to be the
management of the finance function.”
In the words of Archer and Ambrosio “Financial management is the application of the planning
and control function to the finance function.”
According to Joseph and Massie, “Financial management is the operational activity of a
business that is responsible for obtaining and effectively utilising the funds necessary for
efficient operations.”
To conclude financial management is concerned with the management of the finance for the
smooth running and successful achievement of the objectives of the enterprises. It is the art
and science of using , managing, and controlling the business money. It is the management and
control of money and money-related operations within a business.
Characteristics of Financial Management
Management of money.
Financial planning and control.
Determination of business success.
Focus on descition making.
Centralised in nature.
Continuous administrative function.
Multidisciplinary.
