Nature of Financial Management

The Present Chapter

It discusses the concept of financial management, its scope with its importance and objectives. There is an overview of the various financial problems faced by business enterprises as well.


Almost everything in life eventually boils down to the rupee sign, so the adage goes. Money, and therefore, finance, is an integral part of life.1 Business is no exception to it. It needs to have an efficient financial management not only in totality but also in segmental performance. Hence, growth of every business enterprise is closely linked with efficient management of its finance.

Meaning of Financial Management

Financial management refers to the process of raising and allocation ...

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