Fianancial Management & international finance
Over View of Financial Management
In simple terms finance is defined as the activity concerned with the planning, raising, control-ling and administering of the funds used in the business. Thus, finance is the activity con-cerned with the raising and administering of funds used in business.
MEANING AND DEFINITION OF FINANCIAL MANAGEMENT :
Financial management is managerial activity which is concerned with the planning and con-trolling of the firm’s financial resources.
Howard and Uptron define financial management “as an application of general managerialprinciples to the area of financial decision-making”.Weston and Brighem define financial management “as an area of financial decision making,harmonizing individual motives and enterprise goal”.“Financial management is concerned with the efficient use of an important economic resource,namely capital funds” - Solomon Ezra & J. John Pringle.“Financial management is the operational activity of a business that is responsible for obtain-ing and effectively utilizing the funds necessary for efficient business operations”- J.L. Massie.“Financial Management is concerned with managerial decisions that result in the acquisitionand financing of long-term and short-term credits of the firm. As such it deals with the situa-tions that require selection of specific assets (or combination of assets), the selection of specificliability (or combination of liabilities) as well as the problem of size and growth of an enter-prise. The analysis of these decisions is based on the expected inflows and outflows of fundsand their effects upon managerial objectives”.- Phillippatus.
Nature of Financial Management
The nature of financial management refers to its relationship with related disciplines like eco-nomics and accounting and other subject matters.The area of financial management has undergone tremendous changes over time as regards itsscope and functions. The finance function assumes a lot of significance in the modern days inview of the increased size of business operations and the growing complexities associatedthereto.
FINANCE AND OTHER RELATED DISCIPLINES :
Financial management, is an integral part of the over all management, on other disciplines andfields of study like economics, accounting, production, marketing, personnel and quantitativemethods. The relationship of financial management with other fields of study is explained asunder: