Essay, Term Paper
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Financial Management
Meaning, Objective, Scope and Importance of Financial Management
Finance is regarded as the life blood of a business enterprise. This is because in the modern money oriented economy, finance is one of the basic foundations of all kinds of economic activities. It is the master key which provides access to all the resources for being employed in manufacturing and merchandising activities. It has rightly been said that business needs money to make more money. However, it is also true that money begets more money, only when it is properly managed. Hence, efficient management of every business enterprise is closely linked with efficient management of its finances.
Meaning of Finance and Business Finance:
In general finance may be defined as the provision of money at the time it is wanted, The Encyclopedia Britannica conveys the idea of finance in he following words: Finance is the act of providing the means of payment.
However, as a management function it has a special meaning. Finance function may be defined as the procurement of funds and their effective utilization.
Business finance means, finance required for promoting and running trade, commerce or industrial undertakings. Business finance can broadly be defined as the activity concerned with planning, raising, controlling and administering of the funds used in the business.
The business finance mainly involves, raising of funds and their effective utilization keeping in view the overall objectives of the firm.
Financial Management:
Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources to achieve the overall objectives of the firm. The management makes use of various financial techniques, devices for planning administering and controlling the financial affairs of the firm in the most effective and efficient way. Financial management, therefore, means the entire gamut of
Financial Management
Meaning, Objective, Scope and Importance of Financial Management
Finance is regarded as the life blood of a business enterprise. This is because in the modern money oriented economy, finance is one of the basic foundations of all kinds of economic activities. It is the master key which provides access to all the resources for being employed in manufacturing and merchandising activities. It has rightly been said that business needs money to make more money. However, it is also true that money begets more money, only when it is properly managed. Hence, efficient management of every business enterprise is closely linked with efficient management of its finances.
Meaning of Finance and Business Finance:
In general finance may be defined as the provision of money at the time it is wanted, The Encyclopedia Britannica conveys the idea of finance in he following words: Finance is the act of providing the means of payment.
However, as a management function it has a special meaning. Finance function may be defined as the procurement of funds and their effective utilization.
Business finance means, finance required for promoting and running trade, commerce or industrial undertakings. Business finance can broadly be defined as the activity concerned with planning, raising, controlling and administering of the funds used in the business.
The business finance mainly involves, raising of funds and their effective utilization keeping in view the overall objectives of the firm.
Financial Management:
Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources to achieve the overall objectives of the firm. The management makes use of various financial techniques, devices for planning administering and controlling the financial affairs of the firm in the most effective and efficient way. Financial management, therefore, means the entire gamut of