1.

Introduction to Financial Management

Financial management is a crucial aspect of any business, providing the framework for
creating, managing, and growing wealth. It involves planning, organizing, directing, and
controlling the financial activities such as procurement and utilization of funds. The
primary objective of financial management is to maximize shareholder value through
long-term and short-term financial planning and various strategic financial practices.

The scope of financial management extends to financial decision-making, which

includes investment decisions (what to invest in), financing decisions (where to source
funds), and dividend decisions (how much profits to distribute). It also covers financial
risk management, aiming to minimize potential financial losses. Efficient financial
management ensures adequate supply of funds, optimum use of funds, increasing
profitability, and ensuring safety on investment.

In today's dynamic business environment, financial management also deals with global
financial environments, including currency exchange risks and international investment
strategies. It requires a delicate balance of risk and profitability, understanding of
markets, and ability to adapt to new financial tools and technologies.