Financial Management means planning, organising, directing, and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to the financial resources of the enterprise.
⦁ To understand how to ensure adequate returns to the shareholders which will depend upon the earning capacity, market price of the share, expectations of the shareholders.
⦁ To understand how to ensure safety on investment, i.e., funds should be invested in safe ventures so that adequate rate of return can be achieved.
⦁ To understand the basic concepts of finance from non-finance managers perspectives.