Introduction to Financial Management
INTRODUCTION TO FINANCIAL MANAGEMENT Financial Management 1. No business activity can be undertaken without finance. 2. Finance is the lifeblood of business. A business cannot even be started without finance. 3. Every kind of business organization, whether it is small, medium or big, it needs finance. 4. Every business activity is an economic activity and these activities require finance. 5. There arises the need for arranging and managing finance in the businesses. Meaning and Definition of Financial Management Financial management is concerned with the acquisition of funds and their optimum utilization. It is all about acquiring funds at minimum cost and generate optimum return by its optimum utilization. Funds are acquired to meet financial aspects of business activity. 1. According to J.S. Massie: “Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations...