PRESENTATION ON

NATURE AND SCOPE OF

FINANCIAL MANAGEMENT

BY:
Name
ROLL NO. MBA 3210
2ND SEMESTER 2011
SUB : FINANCIAL
MANAGEMENT

PREVIEW:
Introduction
Definition of Financial
Management
Meaning of financial
management
Nature of financial management
Scope of Financial Management
Conclusion
Bibliography

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.

The Four Basic Areas of finance

Corporate finance
Investments
Financial institutions
International finance

Why Study Finance?

Marketing

and finance
Budgets, marketing research, marketing
financial products
Accounting and finance
Dual accounting and finance
function,preparation of financial statements
Management and finance
Strategic thinking, job performance and
profitability
youand finance(personal finance)
Budgeting, retirement planning, college
planning, day-to-day cash flow issues

Nature of financial management

FM

is an area of decision making in

finance function of the business.
It is descriptive/ theoretical/statistical/
historical and analytical in nature.
It involves application of management
principles to the finance function.
It is applicable to every organization
irrespective of its size, nature, lace.

Continued
It

deals with accumulation and

utilization of financial
resources(business resources).
It is directed towards achieving
business objectives.

Scope of financial management.

1.Estimating financial
requirements
2.Deciding capital structure
3.Selecting source of finance
4. Investment of funds
5. Disposal of surplus
6. Cash management
7. Financial controls
8. Meeting statuary requirement

Conclusion:
Good financial management is
both science and art, requiring
accurate information and a good
bit of creativity.

THANK
YOU