Management 1 (Organizational Behaviour/Finance & Accounting) | 23. Introduction to Financial Management by Abraham | Learn Smarter
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23. Introduction to Financial Management

Financial Management encompasses the planning, organizing, directing, and controlling of financial activities within an organization. It is critical for maximizing profits, ensuring liquidity, and facilitating long-term growth, especially in engineering and IT sectors where financial literacy is essential. Key concepts include investment, financing, dividend decisions, and the role of financial managers in navigating challenges and opportunities.

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Sections

  • 23

    Introduction To Financial Management

    This section introduces the fundamentals of financial management essential for business decision-making.

    Learning Practice

  • 23.1

    What Is Financial Management?

    Financial Management involves managing an organization's financial resources to achieve its objectives efficiently.

    Learning Practice

  • 23.2

    Objectives Of Financial Management

    The objectives of financial management focus on maximizing profits, increasing shareholder wealth, maintaining liquidity, utilizing resources efficiently, and ensuring business growth.

    Learning Practice

  • 23.3

    Functions Of Financial Management

    Financial management encompasses a variety of essential functions that guide organizations in effectively allocating resources, making investments, securing financing, and managing liquidity.

    Learning Practice

  • 23.4

    Importance Of Financial Management In Engineering And It

    Effective financial management is crucial for engineers and IT professionals to ensure project budgeting, secure funding, make technology investment decisions, and conduct profitability analysis.

    Learning Practice

  • 23.5

    Key Financial Decisions

    This section outlines the primary financial decisions organizations make, encompassing investment, financing, and dividend decisions essential for business success.

    Learning Practice

  • 23.5.A

    Investment Decisions

    Investment decisions involve the allocation of capital to long-term assets, utilizing various project appraisal techniques.

    Learning Practice

  • 23.5.B

    Financing Decisions

    Financing decisions involve determining how an organization will raise capital and the implications of these decisions on risk and cost.

    Learning Practice

  • 23.5.C

    Dividend Decisions

    This section covers the crucial topic of dividend decisions, focusing on how much of a company’s earnings should be retained and how much should be distributed to shareholders.

    Learning Practice

  • 23.6

    Sources Of Finance

    This section outlines the various sources of finance available to businesses, distinguishing between equity, debt, retained earnings, and short-term financing options.

    Learning Practice

  • 23.7

    Role Of Financial Manager

    The financial manager plays a strategic role in ensuring the financial health of an organization through project viability assessment, compliance with regulations, and liquidity management.

    Learning Practice

  • 23.8

    Emerging Trends In Financial Management

    This section discusses the latest trends transforming the landscape of financial management, emphasizing technology's role and sustainability.

    Learning Practice

  • 23.9

    Challenges In Financial Management

    This section discusses various challenges encountered in financial management, which include economic fluctuations, cybersecurity threats, regulatory complexities, capital market volatility, and potential misalignment of goals.

    Learning Practice

References

Chapter_23_Intro.pdf

Class Notes

Memorization

What we have learnt

  • Financial Management is cru...
  • The primary objectives incl...
  • Key financial decisions cov...

Final Test

Revision Tests