ManagementParadise.com : Worlds Leading Management Portal. MBA | Classroom, Boardroom and Beyond


Go Back   ManagementParadise.com Forums - Your MBA Online Degree Program and Management Students Forum for MBA,BMS, MMS, BMM, BBA, students & aspirants. > Projects HUB for Management Students ( MBA Projects and dissertations / BMS Projects / BBA Projects > Resolve Your Query - Get Help and discuss Projects > Financial Management ( FM )

NATURE OF FINANCIAL MANAGEMENT

NATURE OF FINANCIAL MANAGEMENT

Discuss NATURE OF FINANCIAL MANAGEMENT within the Financial Management ( FM ) forums, part of the Resolve Your Query - Get Help and discuss Projects category; NATURE OF FINANCIAL MANAGEMENT Define and explain financial management Financial management is broadly concerned with the mobilization and development of ...

Reply

 

LinkBack Thread Tools Display Modes
Advertisements
NATURE OF FINANCIAL MANAGEMENT
Old
 (1 (permalink))
Sunanda K. Chavan
sunandaC has a spectacular aura aboutsunandaC has a spectacular aura aboutsunandaC has a spectacular aura about
 
sunandaC
Management Paradise Guru
Status: Offline
Posts: 6,680
Join Date: Jul 2010
NATURE OF FINANCIAL MANAGEMENT - September 13th, 2010

NATURE OF FINANCIAL MANAGEMENT


Define and explain financial management


Financial management is broadly concerned with the mobilization and development of funds by a business organization .for efficient operation of business. It is necessary to obtain and utilize the funds effectively. This job is done by financial management.

Basically therefore financial management centers around funds raising for business in the most economical way and investing these funds in optimum way so that maximum returns can be obtained for the shares holders. Practically all business decisions have financial implication. Hence, financial management is interlinked with all others functions of business.
Advertisements
Friends: (0)
Reply With Quote
#  
MBA
Your Friendly Helper
 
www.ManagementParadise.com
Rep Power: 10MBA Helper
Automatic Reply for links related to your post

Hello.

I am your friendly Helper. Check the related links below which might be of your interest.

Not a Member Yet ?? Sign Up Now. Click Here

Looking for something? Search the Forums

Need Help on your Research Report ? Ask for Help or Help Others and create your network. Give back to the community by sharing your knowledge in terms of notes, research reports, discussions, articles etc..

Help Yourself and Help Others


Ask us, we are here to help

Related to NATURE OF FINANCIAL MANAGEMENT
 

Similar Threads

Thread Thread Starter Forum Replies Last Post
need proj on nature, nature synthesis jack Indian Management Thoughts and Practices ( IMTP ) 7 January 9th, 2011 07:18 PM
nature of international operations management Shruthi Anand Production Management ( Prod Mgmt) 0 February 28th, 2010 07:08 AM
Financial-Management-ch-financial resources rohini.r619 Financial Management 1 February 2nd, 2010 11:19 PM
excellence-in-financial-management-evaluating-financial-performance rohini.r619 Financial Management 0 July 24th, 2009 03:06 PM
Nature & Management gaurav_kh3 Case Studies Hub 0 September 27th, 2007 12:39 PM
 
Re: NATURE OF FINANCIAL MANAGEMENT
Old
 (2 (permalink))
Dharmik Moni
dharmikmoni is an unknown quantity at this point
 
dharmikmoni
Student of MBA at COMPUSPIRIT
Mumbai, Maharashtra
Management Paradise Newbie
Status: Offline
Posts: 453
Join Date: Aug 2013
Re: NATURE OF FINANCIAL MANAGEMENT - August 18th, 2014

Hey Friend,

Nice post with Define and explain of Nature of Financial Management.
Friends: (0)
Reply With Quote
Re: NATURE OF FINANCIAL MANAGEMENT
Old
 (3 (permalink))
Pandey Bhoopendra
Bhoopendra is on a distinguished road
 
Bhoopendra
Student of BMM at RIZVI INSTITUTE OF MANAGEMENT AND STUDIES AND RESEARCH
Mumbai, Maharashtra
Management Paradise Guru
Status: Offline
Posts: 2,938
Join Date: Jun 2012
Re: NATURE OF FINANCIAL MANAGEMENT - May 22nd, 2015

Financial management uplift the control over the incoming and outgoing of the money, I know the wording sounded like airtel mobile phone , but surely after reading these post got some idea about,what is the financial management , so i was curious and regarding that, i found some information related to it's scope and for a while i stare at my computer screen, Why? Check it out.


The scope of financial management includes three groups. First – relating to finance and cash, second – rising of fund and their administration, third – along with the activities of rising funds, these are part and parcel of total management, Isra Salomon felt that in view of funds utilisation third group has wider scope.

It can be said that all activities done by a finance officer are under the purview of financial management. But the activities of these officers change from firm to firm, it become difficult to say the scope of finance. Financial management plays two main roles, one – participating in funds utilisation and controlling productivity, two – Identifying the requirements of funds and selecting the sources for those funds. Liquidity, profitability and management are the functions of financial management. Let us know very briefly about them.

1. Liquidity:

Liquidity can be ascertained through the three important considerations.

i) Forecasting of cash flow:

Cash inflows and outflows should be equalized for the purpose of liquidity.

ii) Rising of funds:

Finance manager should try to identify the requirements and increase of funds.

iii) Managing the flow of internal funds:

Liquidity at higher degree can be maintained by keeping accounts in many banks. Then there will be no need to depend on external loans.

2. Profitability:

While ascertaining the profitability the following aspects should be taken into consideration:

1) Cost of control:

For the purpose of controlling costs, various activities of the firm should be analyzed through proper cost accounting system,

ii) Pricing:

Pricing policy has great importance in deciding sales level in company’s marketing. Pricing policy should be evolved in such a way that the image of the firm should not be affected.

iii) Forecasting of future profits:

Often estimated profits should be ascertained and assessed to strengthen the firm and to ascertain the profit levels.

iv) Measuring the cost of capital:

Each fund source has different cost of capital. As the profit of the firm is directly related to cost of capital, each cost of capital should be measured.

3. Management:

It is the duty of the financial manager to keep the sources of the assets in maintaining the business. Asset management plays an important role in financial management. Besides, the financial manager should see that the required sources are available for smooth running of the firm without any interruptions.

A business may fail without financial failures. Financial failures also lead to business failure. Because of this peculiar condition the responsibility of financial management increased. It can be divided into the management of long run funds and short run funds.

Long run management of funds relates to the development and extensive plans. Short run management of funds relates to the total business cycle activities. It is also the responsibility of financial management to co*ordinate different activities in the business. Thus, for the success of any firm or organization financial management is said to be a must.
Friends: (0)
Reply With Quote
Reply

Bookmarks

Tags
financial, management, nature

Thread Tools
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is On
Trackbacks are On
Pingbacks are On
Refbacks are Off


» Login
Forgot Password?  New User?
  

» Recent Threads

Employee Retention of...
Last post by Pandey Bhoopendra
7 Hours Ago 02:17 AM
1 Replies
Employee Retention of...
Last post by Pandey Bhoopendra
7 Hours Ago 02:14 AM
1 Replies
Organisational Structure...
Last post by Pandey Bhoopendra
7 Hours Ago 02:12 AM
1 Replies
Evolution of hrm in india
Last post by Pandey Bhoopendra
7 Hours Ago 02:09 AM
2 Replies
Examinations - has it... ( 1 2 3... Last Page)
Last post by Pandey Bhoopendra
7 Hours Ago 02:08 AM
32 Replies
Who are the Best... ( 1 2 3)
Last post by Pandey Bhoopendra
7 Hours Ago 02:05 AM
22 Replies
Winning is what matters,...
Last post by Pandey Bhoopendra
7 Hours Ago 02:01 AM
1 Replies
Thinking Process
Last post by Pandey Bhoopendra
7 Hours Ago 01:59 AM
3 Replies
Which position does...
Last post by Pandey Bhoopendra
8 Hours Ago 01:54 AM
1 Replies
project on risk mgmt in... ( 1 2 3... Last Page)
Last post by Pandey Bhoopendra
8 Hours Ago 01:51 AM
38 Replies
Solution manual to...
Last post by Pandey Bhoopendra
8 Hours Ago 01:47 AM
3 Replies
DEMATERIALISATI...
Last post by Pandey Bhoopendra
8 Hours Ago 01:44 AM
1 Replies
sbi v/s icici bank ( 1 2)
Last post by Pandey Bhoopendra
8 Hours Ago 01:42 AM
10 Replies
Thematic Funds-...
Last post by Pandey Bhoopendra
8 Hours Ago 01:37 AM
1 Replies
Import Export along wit... ( 1 2)
Last post by Pandey Bhoopendra
8 Hours Ago 01:32 AM
16 Replies
ManagementParadise.com is not responsible for the views and opinion of the posters. The posters and only posters shall be liable for any copyright infringement.


Management Paradise
About Us
Press
Jobs
Contact Us
Kartik Raichura
Legal
Terms & Conditions
Privacy Policy
Disclaimer
Copyrights
Help
Zeitgeist
Support
FAQs
Tour
Feedback
Partners
Follow
Copyright © 2004 - 2013 Management Paradise. Site Developed by Available.co.in