(82)---NATURE OF FINANCIAL MANAGEMENT.

Nature of financial management

Introduction

Financial management is that managerial activity which is concerned with the planning and controlling of the firms financial resources.

Finance functions

It may be difficult to separate the Finance factions from production marketing and other functions but the functions them selves can be reading identified

• Long – term asset mix or investment desertions
• Capital – mix or financing decision
• Profit allocation or dividend decision
• Short –term asset mix or liquidity decision

Financial manager’s role
A Financial manager is a person who is responsible in a significant way to carry out the finance functions. These main finance functions are

• Fund raising
• Fund allocation
• Profit planning
• Understanding capital markets

IN THE FUTURE WE COVERED FINANCIAL MANAGEMENT TWO TIMES PER EVERY WEEK.
TOPICS.

1. Valuation.
2. Investment decisions.
3. Financing and dividend decisions.
4. Ling term financing.
5. Financial and profit analysis.
6. Working capital management.
7. Managing value and risk.