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WHAT IS FINANCIAL MANAGEMENT?

Financial management can be defined as the process of assembling or assessing the financial resources of a business or an organization at the right places so that they can be utilized in the most optimum and legitimate way. It is usually the job of the managers dealing in accounts and finance to make sure that the financial resources of a company are safely invested at places where they will provide the maximum returns with the least expenditure. Example: work done by an accountant in an organization.

Financial management definition by authors Howard & Opton – “Financial management may be defined as that area or set of administrative functions in an organization which is related to the arrangement of cash and credit so that organization may have the means to carry out its objective as satisfactorily as possible.”

This is a major subject if you have opted for finance in MBA, financial management course or any other management diploma course. Some universities also have this subject as a compulsory subject as it is the basic requirement for all the managers to know where the resources must be invested and how they must be managed.

DIFFERENT ROLES/FUNCTIONS OF FINANCIAL MANAGEMENT

The expert writers at studentsassignmenthelp.com will not only help with the financial management assignment answers but will also help you to understand and revise its different scopes, which are as follows-

Investment Decisions- Decisions that relate to investing in assets that are fixed in nature and affect the capital of the business are known as investment decisions.

Dividend Decisions- These decisions are mostly taken by the managers of the firm. Decisions pertaining to the distribution of profits amongst various heads are known are dividend decisions.

Financial Decisions- All the decisions related to raising funds through different mediums like taking loans, issues bonds or shares, etc. comes under the category of financial decisions. These decisions are usually taken by the shareholders or owners of the company.

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