PPT - Introduction to Financial Management | Accountancy and Financial Management - B Com PDF Download

 Page 2


What is Finance?
• The art and science of managing money,
or management of money.
• It is the study of value.
• It is the study of how to make good
decision that involve money.
– What assets to buy?
– How to pay for the assets you buy?
• The art and science of managing money,
or management of money.
• It is the study of value.
• It is the study of how to make good
decision that involve money.
– What assets to buy?
– How to pay for the assets you buy?
Page 3


What is Finance?
• The art and science of managing money,
or management of money.
• It is the study of value.
• It is the study of how to make good
decision that involve money.
– What assets to buy?
– How to pay for the assets you buy?
• The art and science of managing money,
or management of money.
• It is the study of value.
• It is the study of how to make good
decision that involve money.
– What assets to buy?
– How to pay for the assets you buy?
Value Creation Components
• Time
• Uncertainty
Page 4


What is Finance?
• The art and science of managing money,
or management of money.
• It is the study of value.
• It is the study of how to make good
decision that involve money.
– What assets to buy?
– How to pay for the assets you buy?
• The art and science of managing money,
or management of money.
• It is the study of value.
• It is the study of how to make good
decision that involve money.
– What assets to buy?
– How to pay for the assets you buy?
Value Creation Components
• Time
• Uncertainty
Why Study Finance?
• Marketing
– Budgets, marketing research, marketing
financial products
• Accounting
– Dual accounting and finance function,
preparation of financial statements
• Management
– Strategic thinking, job performance,
profitability
• Personal finance
– Budgeting, retirement planning, day-to-
day cash flow issues
• Marketing
– Budgets, marketing research, marketing
financial products
• Accounting
– Dual accounting and finance function,
preparation of financial statements
• Management
– Strategic thinking, job performance,
profitability
• Personal finance
– Budgeting, retirement planning, day-to-
day cash flow issues
Page 5


What is Finance?
• The art and science of managing money,
or management of money.
• It is the study of value.
• It is the study of how to make good
decision that involve money.
– What assets to buy?
– How to pay for the assets you buy?
• The art and science of managing money,
or management of money.
• It is the study of value.
• It is the study of how to make good
decision that involve money.
– What assets to buy?
– How to pay for the assets you buy?
Value Creation Components
• Time
• Uncertainty
Why Study Finance?
• Marketing
– Budgets, marketing research, marketing
financial products
• Accounting
– Dual accounting and finance function,
preparation of financial statements
• Management
– Strategic thinking, job performance,
profitability
• Personal finance
– Budgeting, retirement planning, day-to-
day cash flow issues
• Marketing
– Budgets, marketing research, marketing
financial products
• Accounting
– Dual accounting and finance function,
preparation of financial statements
• Management
– Strategic thinking, job performance,
profitability
• Personal finance
– Budgeting, retirement planning, day-to-
day cash flow issues
Key issues in Finance
• Where to raise financial resources from?
• Wherein to invest the resources?
• How best to manage the production-
distribution function?
• How much of profit to distribute and how
much to retain?
• Where to raise financial resources from?
• Wherein to invest the resources?
• How best to manage the production-
distribution function?
• How much of profit to distribute and how
much to retain?