Question

Which of the following definition of financial management is given by "Massie"?

• A. Financial management is the activity concerned with planning, raising, controlling and administering of funds used n the business.
• B. Financial management is that area of business management devoted to a judicious use of capital and a careful selection of source of capital in order to enable a spending unit to move in the direction of reaching its goals.
• C. Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations
• D. None of the above

Answer 1

The correct option is C Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations

According to Joseph. L. Massie,

Financial management is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations.