BUSINESS ADMINISTRATION
FINANCIAL MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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procurement of finance only
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expenditure of funds only
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safe custody of funds only
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procurement and effective utilization of funds
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Detailed explanation-1: -Financial Management means planning, organizing, directing and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to financial resources of the enterprise.
Detailed explanation-2: -The finance function in business refers to the functions intended to acquire and manage financial resources to generate profit. It produces relevant financial resources and information contributing to the productivity of other business functions, planning, and decision-making activities.
Detailed explanation-3: -The objective underlying the function of procurement of funds is to minimize the cost of funds, whereas the objective behind the utilization of funds is to maximize the returns.
Detailed explanation-4: -Finance Functions-Investment Decision, Financial Decision, Dividend Decision and Liquidity Decision.
Detailed explanation-5: -In business, the finance function involves the acquiring and utilization of funds necessary for efficient operations. Finance is the lifeblood of business without it things wouldn’t run smoothly. It is the source to run any organization, it provides the money, it acquires the money.