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Finanancial manaagement

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Finanancial manaagement

PAPER- VI: FINANCIAL MANAGEMENT UNIT - i LESSON -1FLN.ANCE - AN LN 1RODUC1 IONLESSON OUTLINE•Significance•Definition ofFinancc•Functions 0 f Financ e•

Finanancial manaagement•types of Finance•Business Finance•Direct Finance•Indirect Finance•Public Finance•Private Finance•Corporation Finance•Finance in Relation to other All

ied DisciplinesLEARNING OBJECTIVESAlter reading this lesson you should be able to•Understand the significance anti definition of finance•Know the func Finanancial manaagement

tions of finance•Identify the different types of finance•Describe this relationship between finance with other allied disciplinesISignificanceFinance

Finanancial manaagement

is the life blood of business Before discussing the nature and scope of financial management, the meaning of‘finance’ has to be explained. In fact, th

PAPER- VI: FINANCIAL MANAGEMENT UNIT - i LESSON -1FLN.ANCE - AN LN 1RODUC1 IONLESSON OUTLINE•Significance•Definition ofFinancc•Functions 0 f Financ e•

Finanancial manaagementy of finance in any organization indicates the health of a concern. Every organization, may it be a company, linn, college, school, bank or university

requires finance for running day to day affairs. As every organization preview’s stiff competition, it requires finance not only for survival but als Finanancial manaagement

o for strengthening themselves. Finance is said to be the circulatory system of the economy body, making possible the required cooperation between the

Finanancial manaagement

innumerable units of activity.Definition of FinanceAccording to F.w.l’aish, Finance may be defined as the position of money at rhe lime it is wanted.

PAPER- VI: FINANCIAL MANAGEMENT UNIT - i LESSON -1FLN.ANCE - AN LN 1RODUC1 IONLESSON OUTLINE•Significance•Definition ofFinancc•Functions 0 f Financ e•

Finanancial manaagement corporation, school, bank or government agency.According to Howard and Upton, “finance may be defined as that administrative area or set of administr

ative functions in an organization which relates with the arrangement of each and credit so that the organization may have die means to carry out the Finanancial manaagement

objectives as satisfactorily as possible.2lu the words of Bonneville and Dewey. Financing consists in the raising, providing. managing of all the mone

Finanancial manaagement

y, capital or funds of any kind to be used in connection with the business.As put forth by Hurband and Dockery in his book ‘Modem Corporation Finance’

PAPER- VI: FINANCIAL MANAGEMENT UNIT - i LESSON -1FLN.ANCE - AN LN 1RODUC1 IONLESSON OUTLINE•Significance•Definition ofFinancc•Functions 0 f Financ e•

Finanancial manaagementon to the system as a whole, some force is necessary to bring about direction and co-ordination. Something must direct the flow of economic activity a

nd facilitate its sinixith operation. Finance is the agent that produces this result".lhe Encyclopedia Britannica defines finance as "the act of provi Finanancial manaagement

ding the means of payment." Tl is thus the financial aspect of corporate planning which may be described as the management of money.An analysis of the

Finanancial manaagement

aforesaid definition, makes it clear that Finance directs the How of economic activity and facilitates the smooth operation. Finance provides the req

PAPER- VI: FINANCIAL MANAGEMENT UNIT - i LESSON -1FLN.ANCE - AN LN 1RODUC1 IONLESSON OUTLINE•Significance•Definition ofFinancc•Functions 0 f Financ e•

Finanancial manaagementof new projects and so on. The linancial policy of any organization to a greater extent, determines not only its existence, and survival but also the

performance and success of that orgamzation. Finance IS requứed for investment, purposes as well as to meet substantial capital expenditure projects.F Finanancial manaagement

unctions of FinanceAccording to Paul G. Hasings. "finance" IS the management of the monetary affans of a company. It includes determining what has to

Finanancial manaagement

be paid for and when, raising the money on the best terms available, and devoting the available funds3

PAPER- VI: FINANCIAL MANAGEMENT UNIT - i LESSON -1FLN.ANCE - AN LN 1RODUC1 IONLESSON OUTLINE•Significance•Definition ofFinancc•Functions 0 f Financ e•

PAPER- VI: FINANCIAL MANAGEMENT UNIT - i LESSON -1FLN.ANCE - AN LN 1RODUC1 IONLESSON OUTLINE•Significance•Definition ofFinancc•Functions 0 f Financ e•

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