FUNDAMENTALS

OF FINANCIAL
MANAGEMENT
Finance and Business

CHRISTINE JOY T. MARIANO

MAED - EM 204
 FINANCIAL
MANAGEMENT
"the activity concerned with planning, raising,
controlling and administering of funds used in
the business.”

-Guthman and Dougal

 FINANCIAL
MANAGEMENT
is that area of business management devoted
to a judicious use of capital and a careful
selection of the source of capital in order to
enable a spending unit to move in the direction
of reaching the goals.”

-J.F. Brandley
 FINANCIAL
MANAGEMENT
the operational activity of a business that is
responsible for obtaining and effectively
utilizing the funds necessary for efficient
operations.”

-Massie
WHY IS
FINANCE
MANAGEMENT
IMPORTANT FOR
COMPANIES?
1. FINANCIAL MANAGEMENT HELPS
BUSINESSES SUCCEED
2. FOLLOW RULES AND MANAGE TAXES
3. GET BETTER ACCESS TO FINANCE
4. CONTROL BUSINESS COSTS

5. MEASURE YOUR SUCCESS

6. IMPROVE WEAK AREAS

7. OPTIMIZING MARKETING ACTIVITIES

8. FOCUS ON GROWTH AREAS

9. ENHANCING STAFF STRENGTH

10. PREDICT RISK AND AVOID THEM

 NATURE OF
FINANCIAL
MANAGEMENT
• ESTIMATES
CAPITAL
REQUIREMENTS
2. DECIDES
CAPITAL
STRUCTURE
3. SELECT
SOURCES OF
FUNDS
4. SELECTS
INVESTMENT
PATTERN
5. RAISES
SHAREHOLDERS
VALUE
6.
MANAGEMENT
OF CASH
7. APPLY
FINANCIAL
CONTROL
 REFERENCES:
https://www.toppr.com/guides/business-environment/business-functions/financial-
management/#:~:text=The%20primary%20objectives%20of%20financial%20management
%20are%3A,procurement%20and%20utilization%20of%20funds.

https://commercemates.com/nature-and-scope-of-financial-management/

https://talentedge.com/articles/8-major-roles-and-functions-of-financial-management/
THANK
YOU!