what is FINANCIAL MANAGEMENT, its advantages and importance?

Question

What is the Goal of financial management, its advantage and disadvantage over financial accounting? please help me...

Answer 1

According to Prof. Bradley, "Financial management is the area of business management, devoted to a judicious use of capital and a careful selection of sources of capital, in order to enable a spending unit to move in the direction of reaching its goals." [Cited Gitman, 1986; Pg. 8] This definition points to the four essential aspects of financial management,

They are:
- Financial management is a distinct area of business management - i.e. financial manager has a key role in overall business management
- Prudent or rational use of capital resources -proper allocation and utilization of funds
- Careful selection of the source of capital - Determining the debt equity ratio and designing a proper capital structure for the corporate
- Goal achievement - ensuring the achievement of business objectives viz. wealth or profit maximization.

The essential objective of financial management can be categorized into two broad functional categories -recurring finance functions and non-recurring or episodic finance functions.

- Performing the regular finance functions including financial planning including assessing the funds requirement, identifying and sourcing funds, allocation of funds and income and controlling the use or utilization of funds towards achieving the primary goal of profit/wealth maximization.

- Performing the non-recurring functions including, though not exclusively, the preparation of financial plan at the time of promotion of the business enterprise, financial readjustment during liquidity crisis, valuation of enterprise at the time of merger or reorganization and such other episodic activities of great financial implications....(click on the 1st link)

Financial Management: An Overview

1. What is Financial Management?
2. What are the components of Financial Management?

Click on the 2nd link for the above article.

Answer 2

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The first question you have to ask yourself is: how much money do you have available to support yourself through a degree. Australian universities, unlike those in the USA, have very few scholarships available to international students. Also, what is cheap? In Australia you will need at least around $20,000 AUD to pay for each year in an undergraduate course. The exact figure depends on the course, but this is about close to the average. Then you will need at least $10,000 to pay for your books, travel, living expenses etc. Hence, you are looking at around $30,000 per year for a university education in Australia. I don't consider that cheap. You will have permission to work in Australia for about 20 hours per week. But this will not be enough to support all your financial needs. In addition, you will need to show the Australian immigration department that you do in fact have enough money in the bank to pay for at least all of your first year expenses. The actual cost is also determined by the foreign exchange rate, which can vary from country to country. If you and your sister have exceptional academic records, you might be able to obtain scholarships in the USA. So far, it is the USA that has the most scholarships available to international students. But, the competition for these is intense. If you can get free or low cost university education in Mauritius, then you should consider that as your first option, and pursue degrees that will permit you to work in other countries. For example, medical degrees, engineering degrees, accounting, nursing, finance. Keep your dream for travel alive. Don't give up and one day it will come true. By the way your English is very good :-)

Answer 3

I agree with Capt. The fee for an international student is very high in Australia. We dont have scholarships for undergraduates because we have Austudy which is an allowance for Australian students who attend university - so any Australian will have some money while they study.

Answer 4

what is financial management

Answer 5

Why are all the answers so short these days?

Answer 6

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