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Mind Map: Scope and Objectives of Financial Management | Financial Management & Strategic Management for CA Intermediate PDF Download


Mind Map: Scope and Objectives of Financial Management | Financial Management & Strategic Management for CA Intermediate

The document Mind Map: Scope and Objectives of Financial Management | Financial Management & Strategic Management for CA Intermediate is a part of the CA Intermediate Course Financial Management & Strategic Management for CA Intermediate.
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FAQs on Mind Map: Scope and Objectives of Financial Management - Financial Management & Strategic Management for CA Intermediate

1. What is the primary scope of financial management?
Ans. The primary scope of financial management includes planning, organizing, directing, and controlling financial activities such as procurement and utilization of funds. It aims to ensure the organization has adequate funds for its operations while maximizing returns on investments and ensuring financial stability.
2. What are the key objectives of financial management?
Ans. The key objectives of financial management are to ensure profitability, liquidity, and solvency. It aims to maximize shareholder wealth by increasing the market value of shares, maintain sufficient liquidity to meet short-term obligations, and ensure long-term financial sustainability through prudent financial planning and risk management.
3. How does financial management contribute to the overall business strategy?
Ans. Financial management contributes to overall business strategy by providing the necessary financial data for decision-making, evaluating investment opportunities, and optimizing resource allocation. It aligns financial goals with the business objectives, ensuring that financial resources are effectively used to achieve strategic goals.
4. What role does budgeting play in financial management?
Ans. Budgeting plays a crucial role in financial management as it serves as a financial blueprint for the organization. It helps in planning future financial activities, controlling expenditures, and forecasting revenues. A well-structured budget ensures that resources are allocated efficiently, and financial performance can be monitored and adjusted as necessary.
5. How does risk management fit into financial management?
Ans. Risk management is an integral part of financial management as it involves identifying, assessing, and mitigating financial risks that could impact the organization’s financial health. Effective risk management strategies help in minimizing potential losses and ensuring that the organization can navigate through financial uncertainties while achieving its objectives.
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