MANAGEMENT

Detailed explanation-1: -According to this approach, the scope of the finance function is restricted to “procurement of funds by corporate enterprise to meet their financial needs. The term “procurement” refers to raising of funds externally as well as the inter related aspects of raising funds.

Detailed explanation-2: -Traditional approach. • According to this approach, the scope of the finance. function is restricted to “procurement of funds by. corporate enterprise to meet their financial needs. The term ‘procurement’ refers to raising of funds.

Detailed explanation-3: -Approach 1: Traditional Approach to Finance Function (i) Institutional sources of finance. (ii) Issue of financial devices to collect refunds from the capital market. (iii) Accounting and legal relationship l between the source of finance and business.

Detailed explanation-4: -(i) It is outsider-looking in approach that completely ignores internal decision making as to the proper utilisation of funds. (ii) The focus of traditional approach was on procurement of long-term funds. Thus, it ignored the important issue of working capital finance and management.

Detailed explanation-5: -Traditional View: Financial management is primarily concerned with acquisition, financing and management of assets of business concern in order to maximize the wealth of the firm for its owners.