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

INTRODUCTIO
N TO
FINANCIAL
MANAGEMENT

What is Financial
Management?
2
1

FINANCIAL
MANAGEM
ENT
▰
is concerned with the
acquisition, financing, and
management of assets
with some overall goal in
mind. Thus the decision
function of financial
management can be
broken down into three
major areas: the
investment, financing, and
asset management
decisions.
3
▰
means planning,
organizing, directing
and controlling the
financial activities such
as procurement and
utilization of funds of
the enterprise. It means
applying general
management principles
to financial resources of
the enterprise.

SCOPES OF FINANCIAL
MANAGEMENT
4
▰
is the most important of
the firm’s three major
decisions when it comes
to value creation
▰
begins with a
determination of the
total amount of assets
needed to be held by
the firm; Even when this
number is known, the
composition of the
assets must still be
decided.
▰
Assets that can no
longer be economically
INVESTMENT DECISION
▰
It is concerned with
the borrowing and
allocation of funds
required for the
investment decisions.