The objective of the course is to provide the necessary basic tools for the students so as to manage the finance function. An organizations financial management plays a critical role in the financial success of a business. Managers are responsible for deciding how available funds should be invested in fixed or current assets to earn optimum returns. Financial management the scope of financial management is very wide. Investment decisions involve risk evaluation, measuring the cost of capital and estimating benefits expected out of a particular project. Financial management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. Financial management is all about planning, organizing, directing, and controlling the economic pursuits such as acquisition and utilization of capital of the firm. General management functions include planning, execution and control. Financial management meaning, objectives and functions. Parts, and discuss the disciplines of finance, management accounting and financial accounting. Financial management kpmg switzerland kpmg international.
Scope of financial management means what exactly we study in financial management. Pdf scope and objectives of financial management basic. Financial management is one of the important aspects of overall management, which is directly asscoiated with various functional departments like personnel, marketing and production. Only an optimum finance mix can maximize the market price of the companys shares in the long run. There are many theories around financial management. In order to start up or even run a successful business, you will need.
Any organization needs finances to obtain physical resources, carry out the production activities. Therefore, an organization should consider financial management a key component of the. Financial management means the efficient and effective management of. Financial accounting is a specialized branch of accounting that keeps track of a companys financial transactions. Solid financial management helps those in charge to ensure that the company can generate. Scope and objectives of financial management basic concepts. Nature, significance, and scope of financial management. It means applying general management principles to financial resources of the enterprise. The scope of financial management also includes evaluating the progress of each project after its completion to determine if the clients business was a venture that resulted in revenue, exposure for. The following may be said as the related aspects of financial management raising of funds, using of. Financial management notes mba pdf download mba 2nd sem. Financial decision making includes decisions as to size of investment, sources of capital.
The investment decision involves the evaluation of risk, measurement of cost of capital and estimation of expected benefits from a project. Investment decision financial management is involved in managing all investment decisions of an organization. Financial management includes adoption of general management principles for financial implementation. To decrease the risk, a stable equilibrium is required between debt and equity. Some of the major scope of financial management are as follows. Initially the subject of financial management was confined only to collection of funds, but at present, has vast changes in corporate sector, technological development, introduction of specified forms of financial institutions, etc. Financial management is an organic function of any business. According to khan and jain, finance is the art and science of managing money.