This Presentation gives us information about Financial Management. It gives us details about importance and objectives of Financial Management. Financial Management is all about obtaining funds and how to use that fund.

1. Financial Management :
Importance and Objectives
Robert Smith
Finance
Consultant

2. Contents
Introduction
Importance of Financial Management
Objectives of Financial Management
Conclusion

3. Introduction
It is the art and science of managing money. It is the
duties of financial managers in a business firm.
Financial management is all about obtaining funds and
how to use that fund.
Financial Management is a careful selection of the
source of working capital.
It includes financial planning, financial administration
and financial control.

4. Importance of Financial Management
Development and Economic Growth
Improved Standard of Living
Improved Health

5. Contd..
Creates Job
Alleviation of Poverty
Better Financial Decisions

6. Objectives of Financial Management
Two main objectives of financial management are:
1. Profit Maximization
2.Wealth Maximization
 It provides a framework for optimum financial
decision making.
It operates internal investment and financing of the
firm.

7. Contd..
Profit Maximization
 Profit/EPS maximization should be taken and
those that decrease profit/EPS should be avoided.
 It deals with the allocation of resources. Here
resources are working capital for business funding.
 Financial Management (FM) mainly depends on
efficient economic resource i.e. capital.
 The technical flaws of Profit Maximization are:
1. Ambiguity
2 . Timing Benefits
3. Quality Benefits

8. Contd..
Wealth Maximization
 Wealth maximization is also known as value or net
present worth maximization. It should satisfy all three
requirement, i.e. exactness, quality and money value of
time.
 The technical flaws of Wealth Maximization are:
1. Focus on Stakeholders : Stakeholders include
groups of employees, investors and stakeholders which are
directly related to the firm.
2. EVA (EconomicValueAdded) : EVA is equal to
after tax operating benefits of a firm less the cost of the firm

9. Conclusion
 Financial Management is the mixture of financial
planning, administration and control.
 Financial corporation deals with how corporation obtains
the funds and how corporation allocates that funds.

10. References
 http://
en.wikipedia.org/wiki/Financial_management
https://48factoring.com/working-capital-financing
http://www.managementstudyguide.com/financial
-management.htm
http://www.slideshare.net/anurag_toby/objectives
-of-financial-management-26656656

11. ThankYou !!!