Question
What do you understand by financial management? Write a detailed note on financial sources.
Answer :
Word Count : 886
_____ _______ _______ ________ ______ _________ ______ _____ ______ _______ _______.
______ __________ __________ ___ ____.
________ _____ _______ _____ _____ ________.
____ ________ ___ _________ _______ ___ _________ _________ ______ _____.
______ _________ _________ ____ ____ ___.
_______ _______ ___ _________ __________ ___ _________ _______ __________ ________.
__________ ____ ________ _________ ______ __________ ______.
_______ ____ ______ ___ ____ __________ _________ ___ ______.
___ ______ ______ ______ ______.
____ ______ __________ _______ ____ _________ ____ ___ ______ ____.
_______ ___ _____ ______ _________.
___ ____ _________ _____ _________ __________ _____ _______ ____ ____ _________.
___ ______ _________ _____ _________ ______ ______ _____ ___ ______ _________.
________ ______ ______ __________ _________ __________ ___.
________ ______ _______ _____ ____ _____ ___ _________ _________.
____ _____ __________ _________ _________ ___ ________.
______ _________ ______ ___ ____.
_____ ______ ___ ______ _________ __________ _______ ____ _________ __________ ___ __________.
______ ________ _________ __________ ____ ________ __________ ____ ______ _______ ________.
____ ____ ______ _______ ____ _______ ________.
_______ _____ ___ _______ ____ _____ _____ _____ ______ _________ __________.
______ __________ __________ _____ ___ ________ _______ ___ ____.
___ ________ _________ ________ ___ __________ _____ ______ ______ ________ __________ _____.
_______ ________ ___ ____ ___ _______ _______ ______.
__________ ______ ____ _________ _____ _________ _______ _______ ______ __________ _________.
_______ _________ _____ ____ ____ ___ _______ ________ __________.
_________ _________ ______ _____ __________ _______.
________ _____ ______ ____ __________ _____ __________.
________ __________ _______ _________ ___ __________ ________ _________ __________ __________ ____.
___ _________ _______ __________ _______ ________ _______ ____ _______ ____ __________.
_______ ______ ______ _______ ___ __________ _______ __________ ___ __________.
_____ ________ __________ _________ ___ __________ ___.
_______ _______ ____ _____ _______ _________ _____.
_______ __________ _____ ________ _________ __________ ________ _____ ______ _________.
__________ _____ _________ ___ ___ ______ ___.
__________ ____ ______ _________ __________.
________ __________ ____ ____ ________.
____ __________ _____ ______ ___ ___ __________.
_____ __________ ____ ________ ___ _____ _______ ____ ___ ____ ______.
________ ______ ___ ___ ____ ___ __________ _________ _______.
____ ______ _______ ____ ________.
_______ ___ __________ ________ _________ _____ ____ _________.
___ _____ ________ ______ _____ _______ __________ ___ ________ _______ _________.
______ ______ ____ ____ _______ _________.
______ ________ ____ _________ _________ _________ ____ ______ __________ ______ _____ _____.
______ _______ ______ _______ _______ _____ ____ ________ ___ _____ _______.
____ __________ ___ ________ _________ __________ _______ ____ _________.
______ __________ _____ _____ ______ __________ ________ _________ ________.
____ ___ _________ ______ _____ ______ ________ ___ __________.
_____ _____ __________ ___ ____ _____ __________ ___ ____ ______ _________ ______.
____ _______ ___ _________ ___ ___.
____ _________ __________ _________ __________ __________.
___ __________ ______ _____ ______ _________ __________ ________ ____.
_____ _______ _______ __________ ________ __________ _____ __________.
__________ _________ _______ _____ _____.
________ __________ _________ _______ ____ _______ ________ ___ _________ _____ __________ ___.
_____ ________ __________ _______ _____ _____ ___ ______.
_______ _____ ___ ___ _____ __________ ________ ___ ______ _______ _________.
____ ______ __________ ___ ________ ___ ____ ___.
________ _____ _______ _____ _____ _______ ____ ___ _______ __________ _____ _______.
____ ________ ___ __________ ___ __________ ______.
_________ _____ ________ __________ _______ _____ __________ ______ _________ ____ _________.
__________ ________ _____ __________ ____ ____.
____ _________ ____ _____ _______ _________ ____ ________.
______ ________ ________ _______ ____.
___ _______ ______ _____ _______ _________ ____ ________ ____ _____ _____ _____.
______ ____ ________ ____ ______ ______ ______.
______ _____ _____ __________ _____ _________ ___ ______ __________ _____ _____.
_______ ________ _______ _________ ____ ___ _______ _________.
________ _______ _________ ___ ______ __________.
_________ ____ _____ ______ ______ _______ _____ _____ _____.
________ __________ _____ ___ _______ _________ ______.
Skip in 10
Financial Management 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.
Scope/Elements
- Investment decisions includes investment in fixed assets (called as capital budgeting). Investment in current assets are also a part of investment decisions called as working capital decisions.
- Financial decisions - They relate to the raising of finance from various resources which will depend upon decision on type of source, period of financing, cost of financing and the returns thereby.
a. Dividend decision - The finance manager has to take decision with regards to the net profit distribution. Net profits are generally divided into two:Dividend for shareholders- Dividend and the rate of it has to be decided.
b. Retained profits- Amount of retained profits has to be finalized which will depend upon expansion and diversification plans of the enterprise.
Objectives of Financial Management
The financial management is generally concerned with procurement, allocation and control of financial resources of a concern. The objectives can be-
- To ensure regular and adequate supply of funds to the concern.
- To ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.
- To ensure optimum funds utilization. Once the funds are procured, they should be utilized in maximum possible way at least cost.
- To ensure safety on investment, i.e, funds should be invested in safe ventures so that adequate rate of return can be achieved.
- To plan a sound capital structure-There should be sound and fair composition of capital so that a balance
______ __________ __________ ___ ____.
________ _____ _______ _____ _____ ________.
____ ________ ___ _________ _______ ___ _________ _________ ______ _____.
______ _________ _________ ____ ____ ___.
_______ _______ ___ _________ __________ ___ _________ _______ __________ ________.
__________ ____ ________ _________ ______ __________ ______.
_______ ____ ______ ___ ____ __________ _________ ___ ______.
___ ______ ______ ______ ______.
____ ______ __________ _______ ____ _________ ____ ___ ______ ____.
_______ ___ _____ ______ _________.
___ ____ _________ _____ _________ __________ _____ _______ ____ ____ _________.
___ ______ _________ _____ _________ ______ ______ _____ ___ ______ _________.
________ ______ ______ __________ _________ __________ ___.
________ ______ _______ _____ ____ _____ ___ _________ _________.
____ _____ __________ _________ _________ ___ ________.
______ _________ ______ ___ ____.
_____ ______ ___ ______ _________ __________ _______ ____ _________ __________ ___ __________.
______ ________ _________ __________ ____ ________ __________ ____ ______ _______ ________.
____ ____ ______ _______ ____ _______ ________.
_______ _____ ___ _______ ____ _____ _____ _____ ______ _________ __________.
______ __________ __________ _____ ___ ________ _______ ___ ____.
___ ________ _________ ________ ___ __________ _____ ______ ______ ________ __________ _____.
_______ ________ ___ ____ ___ _______ _______ ______.
__________ ______ ____ _________ _____ _________ _______ _______ ______ __________ _________.
_______ _________ _____ ____ ____ ___ _______ ________ __________.
_________ _________ ______ _____ __________ _______.
________ _____ ______ ____ __________ _____ __________.
________ __________ _______ _________ ___ __________ ________ _________ __________ __________ ____.
___ _________ _______ __________ _______ ________ _______ ____ _______ ____ __________.
_______ ______ ______ _______ ___ __________ _______ __________ ___ __________.
_____ ________ __________ _________ ___ __________ ___.
_______ _______ ____ _____ _______ _________ _____.
_______ __________ _____ ________ _________ __________ ________ _____ ______ _________.
__________ _____ _________ ___ ___ ______ ___.
__________ ____ ______ _________ __________.
________ __________ ____ ____ ________.
____ __________ _____ ______ ___ ___ __________.
_____ __________ ____ ________ ___ _____ _______ ____ ___ ____ ______.
________ ______ ___ ___ ____ ___ __________ _________ _______.
____ ______ _______ ____ ________.
_______ ___ __________ ________ _________ _____ ____ _________.
___ _____ ________ ______ _____ _______ __________ ___ ________ _______ _________.
______ ______ ____ ____ _______ _________.
______ ________ ____ _________ _________ _________ ____ ______ __________ ______ _____ _____.
______ _______ ______ _______ _______ _____ ____ ________ ___ _____ _______.
____ __________ ___ ________ _________ __________ _______ ____ _________.
______ __________ _____ _____ ______ __________ ________ _________ ________.
____ ___ _________ ______ _____ ______ ________ ___ __________.
_____ _____ __________ ___ ____ _____ __________ ___ ____ ______ _________ ______.
____ _______ ___ _________ ___ ___.
____ _________ __________ _________ __________ __________.
___ __________ ______ _____ ______ _________ __________ ________ ____.
_____ _______ _______ __________ ________ __________ _____ __________.
__________ _________ _______ _____ _____.
________ __________ _________ _______ ____ _______ ________ ___ _________ _____ __________ ___.
_____ ________ __________ _______ _____ _____ ___ ______.
_______ _____ ___ ___ _____ __________ ________ ___ ______ _______ _________.
____ ______ __________ ___ ________ ___ ____ ___.
________ _____ _______ _____ _____ _______ ____ ___ _______ __________ _____ _______.
____ ________ ___ __________ ___ __________ ______.
_________ _____ ________ __________ _______ _____ __________ ______ _________ ____ _________.
__________ ________ _____ __________ ____ ____.
____ _________ ____ _____ _______ _________ ____ ________.
______ ________ ________ _______ ____.
___ _______ ______ _____ _______ _________ ____ ________ ____ _____ _____ _____.
______ ____ ________ ____ ______ ______ ______.
______ _____ _____ __________ _____ _________ ___ ______ __________ _____ _____.
_______ ________ _______ _________ ____ ___ _______ _________.
________ _______ _________ ___ ______ __________.
_________ ____ _____ ______ ______ _______ _____ _____ _____.
________ __________ _____ ___ _______ _________ ______.
IGNOU ACADEMY
Your IGNOU journey, made easier.
- Solved Assignments
- Study Notes
- Guess Papers
- Question Papers
Continue Reading — It's Free
Sign in with Google to unlock more of this answer.
✓ Free access
✓ Unlock up to 60% of the answer
✓ No payment required
✓ Unlock up to 60% of the answer
✓ No payment required
Quick Google sign-in. No separate registration form.