Can Business Management and Financial Management be done by a single person? Why or why not? Provide advantages/disadvantages.
Answers
Advantages of Financial Management
Sound financial management leads to increased visibility within the operations, and it supports understanding of the numbers at each level in the business or institute. The advantages of financial management make sure there is investor confidence. Investors are usually keen to look for signs of security within business operations. Effective financial management allows for the correct balance between risk and profit maximization.
Financial management also endorses better decision making. When the relevant facts are easily accessible because of digitization and organization, it becomes easier to derive solutions based on the circumstances of the situation.
Limitations of Financial Management
One of the critical limitations of financial management is the rigidity it ensures within enterprises. The standards of operation are fixed by incorporating particular accounting parameters; however, when the tasks are done, the conditions may change from the original situation. The rules are not able to keep up with the dynamic changes in the market environment, and that leads to bureaucracy and lost revenue.