Importance of Financial Management Homework Help
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Importance of financial management is a crucial topic in the subject of finance and you should understand it to the core for gaining mastery over the subject. In financial management all the decisions related to financial aspects of an organization like procurement and utilization of funds, investment decisions, profit maximization, wealth maximization, and much more are covered comprehensively. Thus it is vital to get Importance of Financial Management Homework Help for clearing all the doubts.
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The Importance of Financial Management
Financial management revolves around the management of funds in an organization in the most effective as well as efficient manner so that financial objectives can be fulfilled. It is highly important because if finances are not managed appropriately then the organization can be a total failure. The importance of financial management is highlighted as follows-
- Financial management clearly defines the financial objectives of a company and lays a clear path as well as strategy for achieving those.
- With financial management it becomes possible to make the best possible use of all the resources, thus avoiding the situations like overutilization and underutilization.
- Without understanding the core areas of financial management it is impossible to ensure optimum cash management, working capital and liquidity.
- By understanding the principles of financial management the investment, financing and dividend decisions are taken on an accurate basis.
- The maximization of value of firm and the shareholders wealth maximization are possible only after understanding the core aspects of financial management.
- With financial management knowledge it gets easy to understand the capital structure of a company and the changes required in debt equity mix.
- Analysis of risk and return and deciding the most profitable ventures is only possible by understanding financial management to the core.
- Safety of investments, portfolio management, decisions like mergers, acquisitions, amalgamations, capital budgeting, long term and short term asset financing and many more areas are covered in financial management.
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Why you may get stuck with this topic?
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