Financial Management and Its Environment
What is Financial Management? Financial Management concerns the acquisition, financing, and management of assets with some overall goal in mind. (James C Van Horne) Financial management “is an area of financial decision-making, harmonizing individual motives and enterprise goals”. (Weston and Brigham) Financial Management can be defined as the process of acquiring and using funds to accomplish a financial objectives. Recall: What is Finance? Finance is the process of transferring fund from surplus economic unit to deficit economic unit. The commercial activity of providing funds and capital is called Finance. Finance represents the processes that transfer money among businesses, individuals, and governments Actually “ the art and science of Managing Money” is called Finance.