FINANCIAL MANAGEMENT - Core Concepts

FINANCIAL MANAGEMENT - Core Concepts

ISBN : 978-93-84922-59-7

Financial management is such a managerial process which is concerned with the planning and control of financial resources. Financial management was started as a separate subject of study in the 20th century. Till now it was used as a part of economics. As an educational subject, its scope has undergone some basic changes from time to time. In the initial years of its development, financial management was concerned only with collection of funds for business. But according the modern viewpoint, not only collection of funds but also their proper utilization is the basic function of financial management. In present times, financial management analyses all financial problems of a business. Financial manager has become an important constituent of business and he provides his significant contribution to all business activities. He estimates the requirement of funds plans the different sources of funds and performs the function of collection of fund and their effective utilization of funds. As all the business activities like marketing, Purchase, production, etc. include the creation and utilization of funds, financial manager must be clear about his duties and responsibilities in relation to these activities. Besides, he should also be clear about the financial objective of the firm.

Dr. Varsha Goel