Miscellaneous -...

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Finance  is considered to be the life blood of business.  Financial management  is concerned with procurement  and utilisation of funds in a proper way. Therefore, financial management enjoys great importance in an  organaisation. Financial management is crucial for the success of a business. Financial management is important  because of the following advantages: 1.   Financial management  helps in obtaining sufficient funds at a minimum cost. 2.   Financial management  ensures effective utilisation of funds. Financial management tries to invest funds in  various assets with a view to maximise the return on shareholder’s investment. 3. Financial management  tries to generate sufficient profits to finance expansion and modernisation of the  enterprise and secure stable growth. 4. Financial management  ensures safety of funds through creation of reserves, re-investment of profits, etc. The major obective of any business concern is to make profit for its owners by selling goods or services. To reach 
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This note was uploaded on 08/14/2011 for the course ECON 103 taught by Professor Profkinney during the Spring '11 term at Athens Tech.

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Miscellaneous -...

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