The document provides an overview of financial management. It discusses that financial management relates to managing money and investments in an optimal manner. The key functions of financial management are financing, investment, and dividend policy. Financing involves determining the appropriate mix of debt and equity. Investment involves deciding where and how much to invest in fixed and current assets. Dividend policy involves determining how much earnings to retain versus pay out as dividends. The overall goal of financial management is maximization of shareholder wealth by focusing on future cash flows. Basic principles include risk-return tradeoff, time value of money, and agency problems between managers and investors.