Financial Management |: Introduction | Objectives | Scope | Functions
Topic: Fundamentals of Finance Key Terms: 1. Finance 2. Financial Management 3. Corporate Finance Main Points: 1. Definition of Finance 2. Scope of Finance 3. Importance of Financial Management Sub-Points: 1.1. Definition of Finance: * "The science of money" * Studies principles and methods of obtaining control of money 1.2. Scope of Finance: * Interconnected with other economic forces * Difficulty in appreciating its role 2.1. Importance of Financial Management: * Concerned with planning and controlling financial resources * Application of managerial principles to financial decision-making Finance : Howard and Upton Administrative area for arranging cash and credit Financial Management : Weston and Brigham Area of financial decision-making, harmonizing individual motives and enterprise goals | Financial Management : Van Horne Acquisition, financing, and management of assets with overall goal in mind Important Notes: - Financial management involves procurement and effectiv...