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Unformatted text preview: Significance of financial management can not be forgotten if you have to survive in business in long run. With financial management , we take the decision of taking fund from different sources and its effective use in different operations of business. If we ignore financial management and use fund without any financial planning, our risk and cost of business will increase. Except this, financial management is important for developing a strategy to enhance the efficiency of your business. Significance of financial management can also be explained from following answers of questions : Q: - 1. Why are fixed assets financed out of long term funds? Ans. # A prudent financial management is helpful to make a capital structure which is sound. Our aim will reduce risk of solvency . With this management, we will buy fixed assets out of long term funds. Long term funds have to pay after 10 or 20 years. So, we can easily repay this management, we will buy fixed assets out of long term funds....
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- Fall '10