3. FINANCE NEED: To run a business. For input operations. For managerial activities. DEFINITION: “ Finance may be defined as the position of money at the time it is wanted” -----according to F.W. Paish.
4. FINANCIAL MANAGEMENT FINANCIAL + MANAGEMENT Financial means procuring sources of money supply and allocation of these sources on the basis of forecasting monetary requirements of the business. Management refers to planning , organization , coordination and control of human activities and physical resources for achieving the objectives of an enterprise.
6. SCOPE OF FINANCIAL MANAGEMENT SCOPE Estimating financial requirements. Deciding capital structure. Selecting a source of finance. Selecting a pattern of investment. Proper cash management. Implementing financial control. Proper use of surpluses.
7. TRADITIONAL APPROACH Under this approach financial management was consider as corporation finance. The following three things were to be studied for procurement of finances:- institutional sources of finance. issue of financial instrument to collect necessary funds from capital market. legal and accounting relationship between business and sources of finance.