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Sandeep Kapoor
B Com(H),C.A.,ADBF
Faculty Member ,CA Final
The Institute Of Chartered Accountants of India
Financial Management is broadly concerned with the
acquisition and use of funds by a business firm. Its
scope may be defined in terms of the following
questions.
How large should the firm be & how fast should it
grow?
Composition of firm’s assets?
Mix of the firm’s financing ?
Analyzing, planning & controlling its financial affairs?
Profit Maximization (profit after tax)
Investors Investors provide the initial cash required The business proposal
• Shareholders to finance the business proposal
• Lenders
Capital Budgeting
Decisions
Return
Capital Structure
Decisions
Market Value of
the Firm
Dividend
Decisions
Risk
Working Capital
Decisions
FORMS OF ORGANISATION
Public Limited Company
• Many owners
• Somewhat complex
• Limited liability
• Distinct legal person
• Free transferability of shares
Private Public
UK Ltd plc
Germany GmbH AG
Japan YK KK
Netherlands BV NV
France Sarl SA
Financing Decision
Dividend Decision
Investment in Short Term & Long Term
Projects
-Inventory Management,