Page 54 - Gradient Elegant Marketing Lead Generation Templates eBook

5.2 Financial Management

Financial Management means planning, organising, directing and
controlling the financial activities such as procurement and
utilisation of funds of the enterprise. It means applying general
management principles to financial resources of the enterprise.

Objectives of Financial Management

The financial management is generally concerned with
procurement, allocation and control of financial resources
of a concern. Financial management is crucial to ensure:

Regular and adequate supply of funds to the concern

Adequate returns to the shareholders which will depend
upon the earning capacity, market price of the share,
expectations of the shareholders

Optimum funds utilisation : Once the funds are procured,
they should be utilised in maximum possible way at least

cost

Safety on investment, i.e, funds should be invested in
safe ventures so that adequate rate of return can be
achieved

To plan a sound capital structure: There should be a
sound and fair composition of capital so that a balance is
maintained between debt and equity capital

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