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Answer» Financial Management: - Financial management is the process of dealing with all the finance related functions of the business.
- The function of acquisition, utilization and allocation of capital is called financial function or financial management.
- Finance is the lifeblood of business. No activity is possible without finance.
- Finance is required for the establishment, development, expansion and modernization of a business.
Following functions are included in financial management: - To estimate the financial needs of the business activities
- To make financial plans keeping in mind the time duration
- To prepare budget
- To allocate funds to various departments
- To decide capital structure and to select sources of acquiring capital
- To carry out the procedure for acquiring the finance
- To see that the acquired funds are properly utilized and to keep control over financial activities
- To form financial policy
- To plan for taxes
- To make arrangement of assets
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