What is financial management? What is the main objective of financial management?
- Financial management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise.
- It is an activity which is concerned with acquisition and conservation of capital funds in meeting financial need an overall objectives of business organisation.
- It means applying general management principles to financial resources of the enterprise.
The main objectives of financial management is wealth maximization of shareholder’s wealth.
- To ensure regular and adequate supply of funds to the concern.
- To ensure adequate returns to the shareholders.
- To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.
Concept: Budgeting and Managing the Finances
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