Financial Management - A. Definition Financial Management
Financial management is the management of financial functions. Financial functions include how to obtain funding (raising of funds) and how to use these funds (allocation of funds). Financial managers are concerned with the determination of total assets worth of investments in various assets and the selection of sources of funds to finance these assets.
Financial managers are concerned with the determination of total assets worth of investments in various assets and the selection of sources of funds to finance those assets. To finance the funding requirements, financial managers can deliver it from sources that originate from outside the company and can also come from within the company. Sources from outside the company comes from capital markets, namely the meeting between the parties need funding and those who can provide funds. Funds from capital markets may be in the form of debt (bonds) or equity (shares). Sources from within the company comes from allowance company profits (retained earnings), backup, and depreciation.
Financial management is the management of financial functions. Financial functions include how to obtain funding (raising of funds) and how to use these funds (allocation of funds). Financial managers are concerned with the determination of total assets worth of investments in various assets and the selection of sources of funds to finance these assets.
Financial managers are concerned with the determination of total assets worth of investments in various assets and the selection of sources of funds to finance those assets. To finance the funding requirements, financial managers can deliver it from sources that originate from outside the company and can also come from within the company. Sources from outside the company comes from capital markets, namely the meeting between the parties need funding and those who can provide funds. Funds from capital markets may be in the form of debt (bonds) or equity (shares). Sources from within the company comes from allowance company profits (retained earnings), backup, and depreciation.