Class 12 Business Stud
,Business
Finance
The fund required
to carry out the
activities of the
Business is called
Business Finance.
, Financial Management
Financial management refers to the efficient acquisition o
finance, efficient utilization of finance and efficient distrib
and disposal of surplus for the smooth working of the comp
In other words, it is concerned with the flow of
funds and involves decisions related to :
Procurement of Funds
Investment of Funds
Distribution of Earnings
, Role of Financial Management
The overall financial health of a business and its future depends a
great deal on the quality of its financial management.
Financial Management is concerned with optimal procurement as
well as the usage of finance.
Good financial management aims at procuring funds at a lower
cost, keeping the risk under control and achieving effective
deployment of such funds in the most productive activities, so
that they can earn the highest possible return for their investors.
It also aims at ensuring the availability of enough funds
whenever required as well as avoiding idle finance.
The financial statements, such as Balance Sheet and Statement of
Profit and Loss Account, of a business are largely determined by
financial management decisions taken earlier.
,Business
Finance
The fund required
to carry out the
activities of the
Business is called
Business Finance.
, Financial Management
Financial management refers to the efficient acquisition o
finance, efficient utilization of finance and efficient distrib
and disposal of surplus for the smooth working of the comp
In other words, it is concerned with the flow of
funds and involves decisions related to :
Procurement of Funds
Investment of Funds
Distribution of Earnings
, Role of Financial Management
The overall financial health of a business and its future depends a
great deal on the quality of its financial management.
Financial Management is concerned with optimal procurement as
well as the usage of finance.
Good financial management aims at procuring funds at a lower
cost, keeping the risk under control and achieving effective
deployment of such funds in the most productive activities, so
that they can earn the highest possible return for their investors.
It also aims at ensuring the availability of enough funds
whenever required as well as avoiding idle finance.
The financial statements, such as Balance Sheet and Statement of
Profit and Loss Account, of a business are largely determined by
financial management decisions taken earlier.
