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?

'Raising finance' involves obtaining funds from various sources to meet the company's financial requirements. Signup and view all the answers

Why is the significance of Financial Management emphasized in companies?

Financial Management is significant as it helps companies invest funds in ventures that yield a return higher than the cost of capital. Signup and view all the answers

What is the main goal of financial management according to some experts?

Getting a company the money it needs on the most attractive terms possible while keeping its goals in mind. Signup and view all the answers

How do some experts view the role of finance in a company's operations?

Money is all in finance since all business transactions involve cash. Signup and view all the answers

According to the third viewpoint, what does financial management involve?

Both the acquisition and effective use of funds. Signup and view all the answers

What is considered the real challenge in a developed market regarding capital?

Maximizing capital use through successful financial planning and control. Signup and view all the answers

Explain the significance of financial management in a manufacturing company context.

Ensuring funds are sufficient for installation of plant and machinery and covering costs and risks. Signup and view all the answers

What are the key activities involved in financial management as per the text?

Acquisition of assets, legal and accounting aspects, fundraising activities, and effective use of funds. Signup and view all the answers

What is the main goal of financial management?

The main goal of financial management is to judiciously use capital and carefully select sources of capital to enable reaching business goals. Signup and view all the answers

Define financial management.

Financial management is the activity concerned with planning, raising, controlling, and administering the funds used in the business. Signup and view all the answers

Why is financial management significant for any company?

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. Signup and view all the answers

What does financial management focus on in terms of capital usage?

Financial management focuses on judiciously using capital and selecting the source of capital wisely to move towards achieving business goals. Signup and view all the answers

Explain the nature of financial management in a business.

Financial management in a business is responsible for obtaining and effectively utilizing the funds necessary for efficient operations. Signup and view all the answers

What are the key activities involved in financial management?

The key activities involved in financial management include planning, raising, controlling, and administering funds used in the business. Signup and view all the answers

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