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Financial Management
What is meant by ‘financial management’? State the primary objective of financial management.
Financial Management is defined as “all activities concerned with the planning, raising, controlling and administering of funds used in the business.” It is concerned with the procurement and utilisation of funds in a proper manner so as to accomplish the objectives of the organization.
Its primary objectives include:
a) Maintenance of adequate liquid assets and
b) Profit maximization of the organisation.
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‘Wealth Maximisation’ is an important objective of financial management. Explain briefly.
What are the main objectives of financial management? Briefly explain.
Or
State the primary objective of financial management.
How the wealth of shareholders can be computed?
What is meant by Financial Management?
Every manager has to take three major decisions while performing the finance function. Explain them.
Explain any six factors affecting the financing decision of a company.
Explain any six factors affecting the dividend decision of a company.
What is meant by Dividend decision? State any four factors affecting the Dividend decision.
What is meant by Financing decision? State any four factors affecting the financing decision.
Explain briefly the factors affecting the investment decision.
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