Finance is the art and science of managing money. The subject of finance is concerned with the procurement, allocation, application and disbursement of money by an organization in order to maximize its return on invested capital. It includes financial services and financial instruments.
Since every business needs funds to carry on its operations and to achieve its objectives. Finance can also be simply defined as ‘provision of money at the time of need’.
Financial management is a managerial activity which is concerned with the planning and controlling of a firm’s financial resources. It is a permanent and continuous process for every business concern.
According to Solomon:
“Financial Management is concerned with the efficient use of an important economic resource, namely, Capital Funds”
About the Financial Management Notes/Ebook
BBA|mantra`s Financial Management Notes/E-book will serve as concise textbook for BBA/BBM/BMS/MBA and other management students and will provide a brief knowledge on various concepts of Financial Management. This ebook includes a concise presentation of the subject matter with extensive use of charts, tables and figures to help students understand the core concepts of financial management.
These financial management notes are based on the latest syllabus of popular management colleges in India.
You can find similar handouts/notes on other management subjects at www.bbamantra.com/enotes
Students who use these notes must also checkout Articles on Financial Management for the complete overview of the subject and you can also find useful financial management projects and presentation at www.bbamantra.com/projects-and-presentations
Table of Contents
Financial Management Introduction
Introduction to Financial Planning
Various Decisions Under Financial Management
Goals of Financial Management
Time Value of Money
Capital Budgeting Techniques
Cost of Capital
Introduction to Dividend Decision
Dividend Decision Models
Working Capital Management
Long-term Sources of Finance