Class 12th Business Studies Financial Management Notes.
Financial Management. .. . Short & Easy Notes for B oard Exam. 1. What do you mean by financial management? what are its role? > Financial management is concerned with the managing finance of the business for smooth functioning and success of the enterprise. The primary objective of financial management is to maximize owners wealth and others. Following are its objectives; To ensure adequate supply of capital to the business. To use fund effectively. To conserve the fund through creation of reserve and investment of profit. Financial management plays the following roles; Determination of fixed assets. Determination of current assets. Determination of proportion of long-term and short-term finance. Determination of various item of profit and loss account. 2. What do you mean by financial planning? what are its importance? > Financial planning refers to estimate the amount of capital and determining its composition. It means deciding in advance how much to spend and on wh...