FINANCIAL MANAGEMENT

Financial management refers to that branch of Financial management refers to that branch of management which is concerned with the management which is concerned with the effective acquisition and use of money.effective acquisition and use of money.

Determination of fixed assets

Detrmination of current assets

Determination of various items of P&L A/c

Determination of proportion of long term and short term finance

Determination of proportion of various long term assets

Role of financial magement

OBJECTIVE OF FINANCIAL MANAGEMENTWealth maximisation -- Wealth maximisation means to

increase the capital invested by the shareholders.Shareholder’s Wealth = number of shares * market price per share

Financial planningIt refers to the preparation of financial blueprint of an

organisation’s future operations.

Process of financial planning

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