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Financial Management

"financial management is concern with the acquisition, financing, and management of assetswith some overall goal in mind"
to achieve the business goal decision makers set up the plan that how they can manage the available resources and keenly observe the resources, efficiently utilization of resources provide handsome return in the form of profit. manage the budget for overall production of the firm, misuse of finance may also cause a problem for the continuous survival of business. the decisions of financial management can be divided into three major areas, the investment, financing and management decisions.

investment decision
it is the most important of the firms three major decisions, the most important to determine firminvestment  and the total amount of assets needed to held by the firm. imaginate the firms liabilities, owners equity and the total assets of the firm, how much of the firms total assets should be devoted to cash or to inventory,determine the total cost  which incur from the beginning till the end, it include construction cost, machinery cost, machinery instalment cost, logistic cost, ,miscellaneous cost, and the overall management of the firm cost.

financial decision
after the decision of investment the second most important decision is financial decision, financial manager are concern with the financing for the firms across the industries.financial manager play a dynamic role in a modern company's development, financing means to raise the fund and manage the firms cash position.if you become the financial manager your ability to adopt the change, raise the funds, invest in assets and manage wisely will affect the success of your firm and ultimately, the overall economy as well.

asset management decision

the third important decision of the firm is the asset management decision, once asset have been squired and appropriate financing provided, these asset must tend to utilized efficiently. the financial manager is charged with varying degrees of operating responsibility over existing assets, these responsibilities of financial manager be more concern with the management of current assets than with the fixed assets.

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