Description
The Financial Management PDF Notes or ebook is helpful for UGC NET Management, Commerce students, MBA BBA Course, B.COM and M.COM Course. This book includes theoretical concepts followed by MCQs.
Financial Management PDF Notes eBook for UGC NET, MBA, BBA, B.COM & M.COM
Meaning of Financial Management
Financial Management pdf notes ebook for commerce, ugc net, mba, bba, b.com and m.com. Financial Management means planning, organizing, directing, and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to the financial resources of the enterprise.
Scope/Elements of Financial Management
- Investment decisions include investment in fixed assets (called capital budgeting). Investment in current assets is also a part of investment decisions called working capital decisions.
- Financial decisions-Â They relate to the raising of finance from various resources which will depend upon the decision on the type of source, period of financing, cost of financing, and the returns thereby.
- Dividend decision-Â The finance manager has to take decisions with regard to the net profit distribution. Net profits are generally divided into two:
- Dividend for shareholders- The dividend and the rate of it has to be decided.
- Retained profits- The amount of retained profits has to be finalized which will depend upon the expansion and diversification plans of the enterprise.
Objectives of Financial Management
Financial management is generally concerned with the procurement, allocation, and control of financial resources of a concern. The objectives can be-
- To ensure a regular and adequate supply of funds to the concern.
- To ensure adequate returns to the shareholders which will depend upon the earning capacity, the market price of the share, and expectations of the shareholders.
- To ensure optimum funds utilization. Once the funds are procured, they should be utilized in the maximum possible way at the least cost.
- To ensure safety on investment, i.e, funds should be invested in safe ventures so that an 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.
SYLLABUS INCLUDED
- Value & Returns,
- Capital Budgeting,
- Dividend,
- Mergers and Acquisition,
- Negotiations,
- Leveraged Buyouts,
- Takeover,
- Portfolio Management,
- Derivatives,
- Working Capital Management,
- International Financial Management,
- Foreign Exchange Market
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