Can You Describe The Basic Concept Of Financial Management?

2 Answers

Lily James Profile
Lily James answered

Financial management deals with the planning, directing, organizing, controlling and monitoring of monetary resources in an organization.

It consists of Managerial finance and Corporate Finance. Managerial finance deals with managerial use of financial techniques whereas corporate finance deals with corporate financial decisions.

Financial Management is extremely important for the organization. It helps in efficient allocation of resources and Activity based costing. On the other hand, corporate finance helps in determining the most efficient way through which money is used to maximize returns and minimize risks. It includes techniques such as Valuation, Portfolio theory, Hedging etc.

Call Tutors Profile
Call Tutors answered

Financial management refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management.

The Basic Concept Of Financial Management

  1. Budgeting
  2. Reporting
  3. Cash Flow Management
  4. Tax Planning
  5. Debt Service
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