Published by: Nuru
Published date: 28 Jan 2022
Finance:
The term finance is used to mean money used to run a business or to carry on an activity.
OR
Finance refers to the activity of managing money or money equivalent (debt, credit, investment), especially by a commercial organization or government.
OR
Finance is used to refer to an academic discipline or subject of study.
Areas of Finance:
The financial manager deals with the management of money and claims against money in every field. They are as follows:
Financial management:
Nature of financial management
Financial management seeks least cost funds and profitable business activities for firms. Financial management deals with many principles and tools that assist financial managers to recommend proper courses of action to deal with these problems. The principles and tools help the financial managers to determine sources of least cost funds and the activities that provide the greatest return on investment.
Individual businesses face two important types of financial problems. They are:
In short, financial management studies financial problems in individual firms. It seeks least cost funds and profitable business activities for firms. Therefore, financial management is the field of greatest concern to corporate financial managers.
Financial Management means planning, organizing, directing, and controlling the financial activities such as procurement and utilization of funds of the enterprise.