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An Introduction to Financial Management. Sees the objective of teaching financial management to be to help managers and potential managers to make sensible investment and financing decisions. Acknowledges that financial theory teaches that investment and financing decisions should be based on cash flow and risk. Financial Management means planning, organizing, directing and controlling the financial activities of the enterprise. It means applying general management. Thus, financial management means to plan and control the finance of the company. It is done to achieve the objectives of the company. Financial management is usually concerned with the flow and control of money within an organisation be it either private or public sector.
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Return on Investment must be greater than the invested amount." "Financial management refers to the effective and efficient management of money and it is also process of planning, controlling, leading, directing of a firm's financial resources.". Sound financial management creates value and organizational ability through the allocation of scarce resources amongst competing business opportunities. 2 May Introduction to financial management. 1. What is Finance? • The art and science of managing money, or management of money. • It is the study.