Why is financial management important?
Financial management helps to determine the financial requirement of the business concern and leads to take financial planning of the concern.
Financial planning is an important part of the business concern, which helps to promotion of an enterprise.
Acquisition of Funds..
What are the principles of financial management?
10 Basic Principles of Financial ManagementOrganize Your Finances. Organizing your finances is the first step to creating wealth. … Spend Less Than You Earn. … Put Your Money to Work. … Limit Debt to Income-Producing Assets. … Continuously Educate Yourself. … Understand Risk. … Diversification Is Not Just for Investments. … Maximize Your Employment Benefits.More items…•
What is the main objective of financial management?
Profit maximization happens when marginal cost is equal to marginal revenue. This is the main objective of Financial Management. Maintaining proper cash flow is a short run objective of financial management.
What is finance function and its aims?
Acquiring Sufficient and Suitable Funds: The primary aim of finance function is to assess the needs of the enterprise, properly, and procure funds, in time. Time is also an important element in meeting the needs of the organisation.