What is the concern of financial management?
Financial management is the business function concerned with profitability, expenses, cash and credit. These are often grouped together under the rubric of maximizing the value of the firm for stockholders.
Financial managers focus on cash flows, the inflows and outflows of cash. They plan and monitor the firm's cash flows to ensure that cash is available when needed.
Finance is concerned with the art and science of managing money. The finance discipline considers how business firms raise, spend, and invest money and how individuals divide their limited financial resources to achieve personal and family goals.
“Financial management is the activity concerned with planning, raising, controlling and administering of funds used in the business.”
Effective financial management is vital for business survival and growth. It involves planning, organising, controlling and monitoring your financial resources in order to achieve your business objectives.
Financial management is concerned with the acquisition, financing, and management of assets with some overall goal in mind.
When it comes to managing finances, there are three distinct aspects of decision-making or types of decisions that a company will take. These include an Investment Decision, Financing Decision, and Dividend Decision.
Financial management is all about monitoring, controlling, protecting, and reporting on a company's financial resources. Companies have accountants or finance teams responsible for managing their finances, including all bank transactions, loans, debts, investments, and other sources of funding.
The objectives of financial management increase the efficiency of an organisation by providing it with the necessary information to make informed decisions. This helps make sure that the organisation uses its resources in the most efficient way possible.
Also called economic burden, economic hardship, financial distress, financial hardship, financial stress, and financial toxicity.
Why is financial management important?
Importance of Financial Management
It helps a business to organize its finances and acquire the necessary capital. It is crucial for efficient and effective use of borrowed money. Businesses need financial management to make financial decisions.
Answer and Explanation: Better quality is associated with higher profitability in a healthcare organization, and thus, this is why financial managers ought to be concerned about quality initiatives.
The correct answer is Wealth maximization. Basic objective of financial management is Wealth maximization. It is concerned with optimal procurement as well as the usage of finance. It aims at reducing the cost of funds procured, keeping the risk under control and achieving effective deployment of such funds.
Cash Flow Management
No business person can ignore cash flow. Whether it is a company of small or large size, cash flow is like their pulse. One must monitor it regularly to ensure that the company functions well and grows.
The correct answer is a. The financial manager's most important job is to make the firm's investment decisions. This, also known as capital budgeting, is the most important job for this type of manager. This individual has to look at and prioritize investment alternatives.
Explanation: Business finance deals primarily with rising administering and disbursing funds by privately owned business units operating in non-financial fields of industry whereas Financial management involves planning, organizing, and controlling the financial activities of an organization.
Finance degrees are generally considered to be challenging. In a program like this, students gain exposure to new concepts, from financial lingo to mathematical problems, so there can be a learning curve.
Most financial management plans will break them down into four elements commonly recognised in financial management. These four elements are planning, controlling, organising & directing, and decision making. With a structure and plan that follows this, a business may find that it isn't as overwhelming as it seems.
The term return refers to income from a security after a defined period either in the form of interest, dividend, or market appreciation in security value. On the other hand, risk refers to uncertainty over the future to get this return. In simple words, it is a probability of getting return on security.
The traditional approach neglected the issues relating to the allocation and management of funds and failed to make financial decisions. The modern approach is an analytical way of looking into financial problems of the firm.
What are the major financial decisions?
There are three types of financial decisions- investment, financing, and dividend. Managers take investment decisions regarding various securities, instruments, and assets. They take financing decisions to ensure regular and continuous financing of the organisations.
Build an emergency fund
Use your budget to determine how much you can contribute each month toward savings after accounting for the expenses on your needs list. Prioritize building up three to six months of living expenses before you start looking at longer-term savings goals.
When you give a hardship notice (for the first time in any three-month period) the lender must stop further enforcement or legal action until it responds. This requirement does not apply if the creditor has a court judgment . Your creditor can ask you for more information. The information must be relevant.
Meaning of financial burden in English
an amount of money that someone has to pay that may cause difficulty or make them worry, or someone or something that causes this situation: Buying a house often places a large financial burden on young couples. He felt huge guilt at being a financial burden.
1. Assess your financial situation and typical expenses. An important first step is to take stock of your current financial situation. Even if you're not where you'd like to be, be honest with yourself about the income you're currently generating, savings you've accumulated and your general spending habits.
