Importance of financial management
Answers
Explanation:
Helps in improving the profitability of organisations; Increases the overall value of the firms or organisations; Provides economic stability; Encourages employees to save money, which helps them in personal financial planning.
Answer:
Financial management provides pathways to attain goals and objectives in an organisation. The main duty of a financial manager is to measure organisational efficiency through proper allocation, acquisition and management.
The importance of financial management is explained below −
It provides guidance in financial planning.
It assists in acquiring funds from different sources.
It helps in investing an appropriate amount of funds.
It increases organisational efficiency.
It reduces delay production.
It cut down financial costs.
It reduces cost of fund.
It ensures proper use of fund.
It helps business firm to take financial decisions.
It prepares guideline for earning maximum profits with minimum cost.
It increases shareholders’ wealth.
It can control the financial aspects of the business.
It provides information through financial reporting.
It makes the employees aware of saving funds.
raja
Mandalika
Published on 06-Aug-2020 08:14:44
Related Questions & Answers
Explain about various financial statements in financial management.
Explain about modelling in financial management.
Explain about forecasting in financial management.
Explain about factoring in financial management.
Explain various sources of finance in financial management.
Explain about cash flows in financial management.
Explain about sensitivity analysis in financial management.