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BST CH 9 Financial Management (WITH CASE STUDIES), Role and objective of Financial management Video Lecture - Commerce

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FAQs on BST CH 9 Financial Management (WITH CASE STUDIES), Role and objective of Financial management Video Lecture - Commerce

1. What is the role of financial management in commerce?
Ans. Financial management plays a crucial role in commerce as it involves the planning, organizing, directing, and controlling of financial activities within an organization. It focuses on efficiently managing the financial resources to achieve the company's objectives and maximize shareholder wealth.
2. What are the objectives of financial management?
Ans. The primary objectives of financial management are to ensure the availability of adequate funds for the smooth functioning of operations, maximize shareholder wealth, make sound investment decisions, manage financial risks, and maintain a healthy financial position.
3. How does financial management help in decision-making?
Ans. Financial management provides vital information and analysis to support decision-making processes. It helps in evaluating various investment opportunities, assessing their profitability and risks, determining the optimal capital structure, and analyzing the financial implications of different business strategies.
4. Can you provide an example of a financial management case study?
Ans. Sure, one example of a financial management case study could be analyzing the financial performance of a company over a specific period. This may involve examining key financial ratios, such as profitability, liquidity, and solvency ratios, to assess the company's financial health, identify areas of improvement, and make strategic recommendations.
5. How does financial management contribute to the success of a business?
Ans. Financial management is crucial for the success of a business as it ensures effective utilization of financial resources, proper allocation of funds to different activities, optimal capital structure, efficient cash flow management, and effective control over financial risks. By managing these aspects, financial management helps in improving the company's profitability, stability, and long-term growth prospects.
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