Tuesday, 15 March 2011


In the narrow sense of the word financial management refers the routine functions which are performed with in the firm to ensure efficient use of funds. In the broader sense financial management is concerned with the raising and allocation of resources within the firm in order to attain the objectives of the firm. The decision of raising funds determines the financing mix. The financial observer is no longer a passive observer. The allocation of funds finally determines the asset mix of the firm and hence its business risk.

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