Financial management is associated with inflow and outflow of money. Do you agree? If yes, how?
Financial management is associated with inflow and outflow of money. Do you agree? If yes, how?
Yes. Financial management is concerned with inflow and outflow of money as it is concerned with making decisions regarding optimal procurement and utilisation of funds. For effective procurement of funds, different available sources of finance are identified and compared in terms of cost and risk associated with them. Procurement of funds occurs for both long-term needs as well as short-term needs. For long-term financing needs, the funds can be sourced through debt and equity. Short-term financing involves the management of working capital. Now, the funds procured have to be invested in such a manner that the returns are higher than the cost of funds. The outflow of money is through the purchase of fixed assets, current assets, working capital needs, distribution of dividends, etc.
Yes. Financial management is concerned with inflow and outflow of money as it is concerned with making decisions regarding optimal procurement and utilisation of funds. For effective procurement of funds, different available sources of finance are identified and compared in terms of cost and risk associated with them. Procurement of funds occurs for both long-term needs as well as short-term needs. For long-term financing needs, the funds can be sourced through debt and equity. Short-term financing involves the management of working capital. Now, the funds procured have to be invested in such a manner that the returns are higher than the cost of funds. The outflow of money is through the purchase of fixed assets, current assets, working capital needs, distribution of dividends, etc.
