Financial Management- also referred to as

managerial finance, corporate finance, and

business finance.

Financial Management- a decision-making

process concerned with planning, acquiring and
utilizing funds in a manner that achieves the
firm’s desired goals.

Financial Management- described as the

process for and analysis of making financial
decisions in business context.

Financial Management- part of larger discipline

called FINANCE which is a body of facts,
principles, and theories relating to raising and
using money by individuals, business, and gov’.

 Financial management of profit-oriented

business org. particularly the corporate
form of business as well as concepts and
techniques that are applicable to individuals
and to gov’.

GOAL OF FINANCIAL MANAGEMENT

 To make money and add value for the

owners (for-profit business)
 To maximize the current value per share of
the existing stock or ownership in a
business firm.
 Financial Management in a business
enterprise must make decision for the
owners of the firm.
 Financial Management must act in the
owners’ or shareholders’ best interest by
making decisions that increase the value of
the firm or the value of the stock.