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Objectives of Financial Management, Accountancy and Financial management Video Lecture - B Com
FAQs on Objectives of Financial Management, Accountancy and Financial management Video Lecture - B Com
| 1. What are the main objectives of financial management? |  |
Ans. The main objectives of financial management include maximizing shareholder wealth, ensuring the availability of adequate funds, minimizing the cost of capital, maximizing profitability, and managing risks effectively.
| 2. What is the role of financial management in business? | |
Ans. Financial management plays a crucial role in business by providing financial planning, decision-making, and control, ensuring the efficient utilization of funds, evaluating investment opportunities, managing working capital, and maintaining financial stability.
| 3. What is the difference between financial management and accountancy? | |
Ans. Financial management focuses on managing financial resources, making investment decisions, and ensuring financial stability, while accountancy primarily deals with recording, classifying, and summarizing financial transactions and preparing financial statements.
| 4. How does financial management contribute to maximizing shareholder wealth? | |
Ans. Financial management contributes to maximizing shareholder wealth by making investment decisions that generate higher returns, managing cash flows efficiently, minimizing costs of capital, and effectively allocating resources to projects that create value for shareholders.
| 5. What are the key functions of financial management in an organization? | |
Ans. The key functions of financial management in an organization include financial planning and forecasting, capital budgeting, financial analysis and reporting, working capital management, risk management, and raising funds through various sources such as equity and debt.
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Nov 15, 2024 Last updated |
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