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प्रश्न
Answer the following question.
Give the meaning of Financial Management.
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उत्तर
Financial management refers to the efficient acquisition, allocation, and usage of funds by the company. It is carried out with the primary aim of reducing the cost of the funds that are procured, minimizing the risk, and effective distribution of funds to different opportunities.
संबंधित प्रश्न
Answer the following question.
State the objective of ' Financial Management '.
Name the concept of financial management which increases the return to equity shareholders due to the presence of fixed financial charges.
Read the following text and answer the following questions on the basis of the same:
Mr. A. Bose is running a successful business. Mr. Bose is the owner of R. K. Cement Ltd. Mr. Bose decided to expand his business by acquiring a Steel Factory. This required an investment of Rs. 60 crores. To seek advice in this matter, he called his financial advisor Mr. T. Ghosh who advised him about the judicious mix of equity (40%) and Debt (60%). Employ more of cheaper debt may enhance the EPS. Mr. Ghosh also suggested him to take loan from a financial institution as the cost of raising funds from financial institutions is low. Though this will increase the financial risk but will also raise the return to equity shareholders. He also apprised him that issue of debt will not dilute the control of equity shareholders. At the same time, the interest on loan is a tax deductible expense for computation of tax liability. After due deliberations with Mr. Ghosh, Mr. Bose decided to raise funds from a financial institution.
In the above case Mr. Ghosh suggested to raised more fund from debt.
Higher debt-equity ratio results in ______.
Which of the following statement is false regarding financial management?
Which of the financial decisions is about the quantum of finance to be raised from various long-term sources?
What does financial management enable in relation to funds?
Financial management keeps control on which risk?
What is the primary objective of financial management?
Efficient financial decisions lead to what?
Financial management decisions directly affect items appearing in which accounts?
Which examples are Current Assets?
What does a decision about Procurement of funds address?
What does a decision about Usage of funds address?
What is the aim of a financial decision concerning Cost of capital?
Which items affected by financial management decisions appear in the Balance Sheet?
Which items affected by financial management decisions appear in the Profit & Loss Account?
