Introduction to Financial Management is more helpful to the Lernars

1. Introduction to Financial Management
BEDADURI RAMA MURTHY

2. BEDADURI RAMA MURTHY B. Com, B.ED, MBA, ( M. Com ), AP-SET,
Associate Professor
Dept. MBA , GIVC
And
Teaching Associate ,
Academy Of Basic Concepts Zone (ABCZ)
Room No 26, Metro Complex, Near Girls College, Madanapalli.
brmurthy.mba@gmail.com

3. Financial Management
 Financial Management is an Integral are of Business
Transactions and Management. The Financial Management can
be defined as Financial Management is an area of financial
decision-making harmonizing individuals and enterprise goals.
Weston and Brigham
 Financial Management is the area of business management
devoted to a judicious use of capital and a careful selection of
sources of capital in order to enable a spending unit to move in
the direction of reaching its goals. J.F. Bradley
 Financial Management as concerned with the acquisition,
financing and management of assets with some overall goal in
mind. James C. Van Horne

4. Nature of Financial Management
 Estimating Financial Requirement
 Selecting a Sources of Finance
 Selecting a patron of Investment
 Proper Cash Management
 Implementing Financial Control
 Proper Use of Surplus
 It’s determined Growth of the Firm

5. Nature of Financial Management
 Estimating Financial Requirement
 Selecting a Sources of Finance
 Selecting a patron of Investment
 Proper Cash Management
 Implementing Financial Control
 Proper Use of Surplus
 It’s determined Growth of the Firm

6. Nature of Financial Management
 Estimating Financial Requirement
 Selecting a Sources of Finance
 Selecting a patron of Investment
 Proper Cash Management
 Implementing Financial Control
 Proper Use of Surplus
 It’s determined Growth of the Firm

7. Nature of Financial Management
 Estimating Financial Requirement
 Selecting a Sources of Finance
 Selecting a patron of Investment
 Proper Cash Management
 Implementing Financial Control
 Proper Use of Surplus
 It’s determined Growth of the Firm

8. Nature of Financial Management
 Estimating Financial Requirement
 Selecting a Sources of Finance
 Selecting a patron of Investment
 Proper Cash Management
 Implementing Financial Control
 Proper Use of Surplus
 It’s determined Growth of the Firm

9. Nature of Financial Management
 Estimating Financial Requirement
 Selecting a Sources of Finance
 Selecting a patron of Investment
 Proper Cash Management
 Implementing Financial Control
 Proper Use of Surplus
 It’s determined Growth of the Firm

10. Nature of Financial Management
 Estimating Financial Requirement
 Selecting a Sources of Finance
 Selecting a patron of Investment
 Proper Cash Management
 Implementing Financial Control
 Proper Use of Surplus
 It’s determined Growth of the Firm

11. Scope Of Financial Management
 Traditional Approach
 Modern Approach

12. Scope Of Financial Management
 Modern Approach
 Investment Decision,
 Financing Decision,
 Capital Decision,
 Working Capital Decisions
 Dividend Policy Decision,
 Interest rate decision and
 Exchange rate decision

13. Scope Of Financial Management
 Traditional Approach (1920-1930) (Institutional sources of finance,
Issue of financial instruments and legal relationship)
 Procurement of short-term, medium-term and long-term funds from
different sources of financial Institutions.
 Funds are raising through financial instruments like Equty Share,
Preference Shares, Debentures, Bonds Etc.
 Looking after the legal and accounting relationship between a
company and its sources of funds.
 Redistribution of income and assets among these resources.

14. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

15. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

16. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

17. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

18. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

19. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

20. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

21. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

22. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

23. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

24. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

25. Importance Of Finance Functions
Financial management has special significance in the origin
Growth of corporation in modern times.
 Significant part of Business Management
 Liquidity and Profitability
 Value of the Firm
 Centralized Nature
 Benefit to Investors
 Processing at Minimum Cost
 Best Mixer of Investment
 Controlling Expenditure
 Stable Growth through Exposition

26. The new Roll in Contemporary scenario
 Greeter Impact on Capitalist World
 Economical Resources
 More Effective Management (Wealth management)
 Financial Risk by Institutional
 Global Economy

27. The new Roll in Contemporary scenario
 Greeter Impact on Capitalist World
 Economical Resources
 More Effective Management (Wealth management)
 Financial Risk by Institutional
 Global Economy

28. The new Roll in Contemporary scenario
 Greeter Impact on Capitalist World
 Economical Resources
 More Effective Management (Wealth management)
 Financial Risk by Institutional
 Global Economy

29. The new Roll in Contemporary scenario
 Greeter Impact on Capitalist World
 Economical Resources
 More Effective Management (Wealth management)
 Financial Risk by Institutional
 Global Economy

30. The new Roll in Contemporary scenario
 Greeter Impact on Capitalist World
 Economical Resources
 More Effective Management (Wealth management)
 Financial Risk by Institutional
 Global Economy

31. The new Roll in Contemporary scenario
 Greeter Impact on Capitalist World
 Economical Resources
 More Effective Management (Wealth management)
 Financial Risk by Institutional
 Global Economy

32. Goals of Finance Functions
 Profit Maximization
 Maximizing shareholders wealth
 Maximizing Profitability
 Maximizing Profit Subject to cash constraint
 Maximizing Net present wroth and
 Seeking an optimum position along a risk-return frontier
 Target Market share
 Sustaining and maintaining the business position
 Maintaining financial liquidity and Solvency

33. Goals of Finance Functions
 Profit Maximization
 Maximizing shareholders wealth
 Maximizing Profitability
 Maximizing Profit Subject to cash constraint
 Maximizing Net present wroth and
 Seeking an optimum position along a risk-return frontier
 Target Market share
 Sustaining and maintaining the business position
 Maintaining financial liquidity and Solvency

34. Goals of Finance Functions
 Profit Maximization
 Maximizing shareholders wealth
 Maximizing Profitability
 Maximizing Profit Subject to cash constraint
 Maximizing Net present wroth and
 Seeking an optimum position along a risk-return frontier
 Target Market share
 Sustaining and maintaining the business position
 Maintaining financial liquidity and Solvency

35. Goals of Finance Functions
Profit Maximization
Maximizing shareholders wealth
Maximizing Profitability
Maximizing Profit Subject to cash constraint
Maximizing Net present wroth and
Seeking an optimum position along a risk-return
frontier
Target Market share
Sustaining and maintaining the business position
Maintaining financial liquidity and Solvency

36. Goals of Finance Functions
Profit Maximization
Maximizing shareholders wealth
Maximizing Profitability
Maximizing Profit Subject to cash constraint
Maximizing Net present wroth and
Seeking an optimum position along a risk-return frontier
Target Market share
Sustaining and maintaining the business position
Maintaining financial liquidity and Solvency

37. Goals of Finance Functions
Profit Maximization
Maximizing shareholders wealth
Maximizing Profitability
Maximizing Profit Subject to cash constraint
Maximizing Net present wroth and
Seeking an optimum position along a risk-return frontier
Target Market share
Sustaining and maintaining the business position
Maintaining financial liquidity and Solvency

38. Goals of Finance Functions
Profit Maximization
Maximizing shareholders wealth
Maximizing Profitability
Maximizing Profit Subject to cash constraint
Maximizing Net present wroth
Seeking an optimum position along a risk-return frontier
Target Market share
Sustaining and maintaining the business position
Maintaining financial liquidity and Solvency

39. Goals of Finance Functions
Profit Maximization
Maximizing shareholders wealth
Maximizing Profitability
Maximizing Profit Subject to cash constraint
Maximizing Net present wroth and
Seeking an optimum position along a risk-return frontier
Target Market share
Sustaining and maintaining the business position
Maintaining financial liquidity and Solvency

40. Goals of Finance Functions
Profit Maximization
Maximizing shareholders wealth
Maximizing Profitability
Maximizing Profit Subject to cash constraint
Maximizing Net present wroth and
Seeking an optimum position along a risk-return frontier
Target Market share
Sustaining and maintaining the business position
Maintaining financial liquidity and Solvency

41. Goals of Finance Functions
Profit Maximization
Maximizing shareholders wealth
Maximizing Profitability
Maximizing Profit Subject to cash constraint
Maximizing Net present wroth
Seeking an optimum position along a risk-return frontier
Target Market share
Sustaining and maintaining the business position
Maintaining financial liquidity and Solvency

42. Thanking You