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Report On Financial Management | Objectives & Implications

   

Added on  2020-02-03

7 Pages1358 Words138 Views
FINANCIAL MANAGEMENT1
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Table of Contents2
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INTRODUCTIONFinancial management is very important aspect for the organisation by which firm canmaintain the records of income and expenses incurred in the business activities and function. It isprocess of analysing, interpreting, examining the financial information about business and use inorder to maintain the record of finance (Mitchell, Hammond and Utkus, 2017). It assists tobusiness in various activities like maintain daily operation of finance, allocation of resources,organise activities, take any other decision related to investment in the future, maximisation ofprofit, wealth maximisation of shareholders etc. Hence it can be said that financial managementis an aspect through which organisation can smoothly carried out its function by analysingfinancial information. The following project report provides a deep knowledge andunderstanding about the major objective of financial management and its implication in thedecision related to shareholder perspectives. In addition to this role of government in providingassistance for business has been also discussed in this report.MAIN BODY1 Evaluation of the purpose of financial management and the implication of three decisions fromthe shareholder perspectivesFinancial management refers to the planning, organising, directing and controlling the allactivities of finance within the business. It assists to company in recording of all financial datalike income, expenses, revenue etc which incurred in the business activities and functions. Themajor purpose of the financial management is as follows-Maximisation of ordinary shareholders wealth- It is the prime objective of financialmanagement through which provide adequate return to the shareholder.Maximising profit and revenue- The major objective of financial statement is tomaximise the profit when marginal cost being equal to the marginal revenue in thebusiness.Appropriate allocation of fund-Another major objective of financial management is toensure the regular and appropriate supply of funds in the business activities and directthem in an effective manner. By proper allocation of fund daily operation of business canconduct in a smooth manner.3
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