Question
What is meant by ‘financial management’? State the primary objective of financial management.
Solution
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.
