Financial Management

Financial management is two way process in which finance manager obtain funds and money at low cost and risk and use it in higher earning project at minimum risk. Expert says that it is science to earn maximum return at minimum risk and control. In financial management, following decision is taken technically. Ist To Get Funds from Different Sources:- This decision is very helpful for development of company. You know that if you start even a small business, you need fund for paying capital and revenue expenditures. But you have to give its cost. You have also to take the risk of its repayment; it may possible that at the time of repayment, you have no money in your pocket. It is the risk of solvency. You also have to see who will control your business after taking fund. We explain our views to make understand to you. 2nd Decision Effective Utilization of Funds:- Effective utilization of funds is just decision to maximize the return on investment of funds. If finance manager is not capable to increase the return by investing fund in profitable assets or other profitable projects, company’s business will stop just in two day. So, finance manager should not know only basics of capital budgeting, other investment decisions and investment analysis but also should do deep study more than two years in same field for becoming perfect in it.