One needs money to make money. Finance is the life-blood of business and there must be a continuous flow of funds in and out of a business enterprise.
Financial management is an organic function of any business. Any organization needs finances to obtain physical resources, carry out the production activities and other business operations, pay compensation to the suppliers, etc.
The scope of financial management is explained in the diagram below:
You can understand the nature of financial management by studying the nature of investment, financing, and dividend decisions.
|Financial Management – An Overview|
|Time Value of Money|
|Risk & Return|
|Cost of Capital|