Define financial management. Discuss the nature and scope of financial management
Answers
hey
mate
Financial management focuses on ratios, equity and debt. Financial managers are the people who will do research and based on the research, decide what sort of capital to obtain in order to fund the company's assets as well as maximizing the value of the firm for all the stakeholders. It also refers to the efficient and effective management of money (funds) in such a manner as to accomplish the objectives of the organization. It is the specialized function directly associated with the top management. The significance of this function is not seen in the 'Line' but also in the capacity of the 'Staff' in overall of a company. It has been defined differently by different experts in the field.
scope of finical management
Estimating the Requirement of Funds: Businesses make forecast on funds needed in both short run and long run, hence, they can improve the efficiency of funding. The estimation is based on the budget e.g. sales budget, production budget.
Determining the Capital Structure: Capital structure is how a firm finances its overall operations and growth by using different sources of funds.[3] Once the requirement of funds has estimated, the financial manager should decide the mix of debt and equity and also types of debt.
Investment Fund: A good investment plan can bring businesses huge returns.
To ascertain maximum profit as well as maintain the core value of the organization
hope this help you.
cheers
NANBA
Financial management is defined as dealing with and analyzing money and investments for a person or a business to help make business decisions. An example of financial management is the work done by an accounting department for a company.