This document summarizes key aspects of financial management. It defines financial management as procuring sources of money and allocating those sources based on forecasted business needs. It describes the traditional approach as focusing on institutional funding sources, issuing financial instruments, and legal/accounting relationships with lenders. The modern approach focuses on determining total funding needs, specific asset acquisitions, and optimal funding sources. Overall, the document outlines estimating financial requirements, capital structure, investment patterns, and financial control as the main scopes of financial management.

1. FINANCIAL MANAGEMENT

2. SUBMITTED TO: Mrs. davinderkaur submitted by: aanchal mba-2ndsem

3. FINANCE NEED: To run a business. For input operations. For managerial activities. DEFINITION: “ Finance may be defined as the position of money at the time it is wanted” -----according to F.W. Paish.

4. FINANCIAL MANAGEMENT FINANCIAL + MANAGEMENT Financial means procuring sources of money supply and allocation of these sources on the basis of forecasting monetary requirements of the business. Management refers to planning , organization , coordination and control of human activities and physical resources for achieving the objectives of an enterprise.

5. APPROACHES TO FINANCE FUNCTIONS The traditional approach. The modern approach.

6. SCOPE OF FINANCIAL MANAGEMENT SCOPE Estimating financial requirements. Deciding capital structure. Selecting a source of finance. Selecting a pattern of investment. Proper cash management. Implementing financial control. Proper use of surpluses.

7. TRADITIONAL APPROACH Under this approach financial management was consider as corporation finance. The following three things were to be studied for procurement of finances:- institutional sources of finance. issue of financial instrument to collect necessary funds from capital market. legal and accounting relationship between business and sources of finance.

9. What specific assets an enterprise should acquire?

11. Financing decision.

12. Investment decision.