Question

What is meant by Financial Management?

Hint:

Effective financial management ensures that a business remains solvent, profitable, and sustainable.

Answer 1

Step 1: Definition of Financial Management
Financial management refers to the planning, organizing, directing, and controlling of financial resources to achieve the organization's financial objectives.
Step 2: Objectives of Financial Management
- Maximizing Shareholder Wealth: Ensuring that the business generates value for shareholders. - Effective Resource Allocation: Allocating funds optimally to maximize returns. - Risk Management: Minimizing financial risks by planning and controlling investments.
Step 3: Conclusion
Financial management is vital for ensuring that a company has the financial resources it needs to operate efficiently and grow in a sustainable manner.
Final Answer: \[ \boxed{\text{Financial management involves planning, organizing, and controlling financial resources to achieve business objectives.}} \]