Introduction to Financial Management

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Questions and Answers

What is the concept of Financial Management?

Financial Management involves planning, organizing, directing, and controlling a company's financial resources.

What are the goals of Financial Management?

The goals include raising finance, allocating financial resources, and maintaining control over resources.

Why is it important for a company to effectively control its finances?

It is crucial because finances, like other resources, are finite while wants are often limitless.

What does 'raising finance' refer to in Financial Management?

<p>'Raising finance' involves obtaining funds from various sources to meet the company's financial requirements.</p>
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Why is the significance of Financial Management emphasized in companies?

<p>Financial Management is significant as it helps companies invest funds in ventures that yield a return higher than the cost of capital.</p>
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What is the main goal of financial management according to some experts?

<p>Getting a company the money it needs on the most attractive terms possible while keeping its goals in mind.</p>
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How do some experts view the role of finance in a company's operations?

<p>Money is all in finance since all business transactions involve cash.</p>
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According to the third viewpoint, what does financial management involve?

<p>Both the acquisition and effective use of funds.</p>
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What is considered the real challenge in a developed market regarding capital?

<p>Maximizing capital use through successful financial planning and control.</p>
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Explain the significance of financial management in a manufacturing company context.

<p>Ensuring funds are sufficient for installation of plant and machinery and covering costs and risks.</p>
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What are the key activities involved in financial management as per the text?

<p>Acquisition of assets, legal and accounting aspects, fundraising activities, and effective use of funds.</p>
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What is the main goal of financial management?

<p>The main goal of financial management is to judiciously use capital and carefully select sources of capital to enable reaching business goals.</p>
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Define financial management.

<p>Financial management is the activity concerned with planning, raising, controlling, and administering the funds used in the business.</p>
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Why is financial management significant for any company?

<p>Financial management is significant for any company as it is a natural part of its operations and ensures the availability of funds for various activities like procurement, manufacturing, and compensation.</p>
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What does financial management focus on in terms of capital usage?

<p>Financial management focuses on judiciously using capital and selecting the source of capital wisely to move towards achieving business goals.</p>
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Explain the nature of financial management in a business.

<p>Financial management in a business is responsible for obtaining and effectively utilizing the funds necessary for efficient operations.</p>
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What are the key activities involved in financial management?

<p>The key activities involved in financial management include planning, raising, controlling, and administering funds used in the business.</p>
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