Assignment 1.pptx - INTRODUCTIO N TO FINANCIAL MANAGEMENT 1...

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INTRODUCTION TOFINANCIALMANAGEMENT
What is FinancialManagement?21
FINANCIALMANAGEMENTis concerned with theacquisition, financing, andmanagement of assetswith some overall goal inmind. Thus the decisionfunction of financialmanagement can bebroken down into threemajor areas: theinvestment, financing, andasset managementdecisions.3means planning,organizing, directingand controlling thefinancial activities suchas procurement andutilization of funds ofthe enterprise. It meansapplying generalmanagement principlesto financial resources ofthe enterprise.
SCOPES OF FINANCIALMANAGEMENT4is the most important ofthe firm’s three majordecisions when it comesto value creationbegins with adetermination of thetotal amount of assetsneeded to be held bythe firm; Even when thisnumber is known, thecomposition of theassets must still bedecided.Assets that can nolonger be economicallyINVESTMENT DECISIONIt is concerned withthe borrowing andallocation of fundsrequired for theinvestment decisions.

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Term
Fall
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