NATURE AND SCOPE OF FINANCIAL MANAGEMENT

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NATURE AND SCOPE OF FINANCIAL MANAGEMENT

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Introduction

Finance is the blood of the business. Without finance neither any business can be started nor successfully run. Finance is needed to promote or establish any business, acquire fixed assets, make necessary, investigations, develop product keep man and machines at work, encourage management to make progress and create values.

Definitions

J.F. Bradlery :
Financial management is the area of business management devoted to a judicious use of capital and a careful selection of sources of capital in order to enable a business firm to move in the direction of reaching its goals

Meaning of financial management

Financial management is application of principles of management to the subject called finance , it involves planning, controlling, decision making with respect to finance activity of the business.