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  • Nature of Financial Management

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    Cyra Ansari
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    This document discusses the nature and key functions of financial management. Financial management, also known as managerial finance, corporate finance or business finance, involves planning, acquiring, and using funds in a way that allows a firm to achieve its goals. The three main functions of financial management are: 1) financial analysis and planning, 2) acquisition of funds, and 3) utilization of funds. Financial analysis and planning involves examining a firm's financial position and determining actions needed to achieve goals, while acquisition of funds is the process of raising money through borrowing, issuing securities, or reinvesting profits. Utilization of funds refers to a firm's receipts and payments of cash.

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    This document discusses the nature and key functions of financial management. Financial management, also known as managerial finance, corporate finance or business finance, involves planning, acquiring, and using funds in a way that allows a firm to achieve its goals. The three main functions of financial management are: 1) financial analysis and planning, 2) acquisition of funds, and 3) utilization of funds. Financial analysis and planning involves examining a firm's financial position and determining actions needed to achieve goals, while acquisition of funds is the process of raising money through borrowing, issuing securities, or reinvesting profits. Utilization of funds refers to a firm's receipts and payments of cash.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
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    49 views6 pages

    Nature of Financial Management

    Uploaded by

    Cyra Ansari
    This document discusses the nature and key functions of financial management. Financial management, also known as managerial finance, corporate finance or business finance, involves planning, acquiring, and using funds in a way that allows a firm to achieve its goals. The three main functions of financial management are: 1) financial analysis and planning, 2) acquisition of funds, and 3) utilization of funds. Financial analysis and planning involves examining a firm's financial position and determining actions needed to achieve goals, while acquisition of funds is the process of raising money through borrowing, issuing securities, or reinvesting profits. Utilization of funds refers to a firm's receipts and payments of cash.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 6

    Nature of Financial Management

    Financial Management , also called Managerial finance , Corporate finance and business finance is a decision making process concerned with planning , acquiring , and utilizing funds in a way that achieves the firms desired goals.
    5/5/2012 1

    FINANCE :

    FINAANCE which is a body of facts, principles, and theories relating to raising and using money by individuals, business, and government

    FINANCEING

    FINANCEING : is a process of rising funds.


    5/5/2012 2

    FUNCTION IN THE FINANCIAL MANAGEMNT PROCESS


    1.

    FINANCIAL ANALYSIS AND PLANNIG 2. ACQUISITION OF FUNDS 3.UTILIZATION OF FUNDS

    5/5/2012

    FINANCIAL ANALYSIS A ND PLANNING. (CAPITAL BUDGETING)

    FINANCIAL ANALYSIS AND PLANNING AND INVOLOVES EXAMINING THE FIRMS FINANCIAL POSITION AND DETERMINING AND ACTIONS NEEDED TO ACHIVE IST GOALS. EVALUOTING THE SIZE, TIMING AND RISK OF THE FUTURE CASH FLOW IS THE ESSENCE OF CAPITAL BUGETING

    5/5/2012

    ACQUISITION OF FUNDS (CAITAL STRUCTURING )


    a. ACQUISITION OF FUNDS INVOLVES DETERMINING THE FIRMS BEST FINANCING MIX
    b. FUND OBTAIN BY BORRONWING FROM FINANCIAL INSITUTION

    c.

    BY ISSUING SECURITEIS

    d. BY PROFIT REINVESTMENT IN FIRMA i. ii. FISRT HOW MUCH SHOULD THE FIRMS BORROW AND WHAT IS MIXTURE OF DEBT AND EQUITY IS BEST? SECOND WHAT ARE THE LEAST EXPENSIVE SOURCE OF FOUNDS FOR THE FIMRS.
    5

    5/5/2012

    UTILIZATION OF FUNDS (CAPITAL STRUCTURING)


    THIS INVOLVE A NUMBER OF ACTIVIES ALL RELATED TO THE FIRMS RECIPTS AND DISBURSTMENT OF CASH

    5/5/2012

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