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Fin Man Definition

Financial management is the process of planning, raising, and controlling funds for a business. It is crucial because resources are limited while wants are unlimited. This article will provide an introduction to financial management, including its nature, scope, significance, and how financial decisions and planning are made. It will define financial management as the judicious use of capital from various sources to help a business achieve its goals.

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63 views

Fin Man Definition

Financial management is the process of planning, raising, and controlling funds for a business. It is crucial because resources are limited while wants are unlimited. This article will provide an introduction to financial management, including its nature, scope, significance, and how financial decisions and planning are made. It will define financial management as the judicious use of capital from various sources to help a business achieve its goals.

Uploaded by

Ella
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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FINANCIAL MANAGEMENT

Finance is the lifeline of any business. However, finances, like most other resources, are
always limited. On the other hand, wants are always unlimited. Therefore, it is important for
a business to manage its finances efficiently. As an introduction to financial management,
in this article, we will look at the nature, scope, and significance of financial management,
along with financial decisions and planning.

DEFINITION:
“Financial management is the activity concerned with planning, raising, controlling and
administering of funds used in the business.” – Guthman and Dougal

“Financial management is that area of business management devoted to a judicious use


of capital and a careful selection of the source of capital in order to enable a spending unit
to move in the direction of reaching the goals.” – J.F. Brandley

“Financial management is the operational activity of a business that is responsible for


obtaining and effectively utilizing the funds necessary for efficient operations.”- Massie

Source:
https://www.toppr.com/guides/business-environment/business-functions/financial-
management/

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