Finance is the life blood of a business organisation. Efficient management of business enterprises is closely linked with efficient management of their finances. This requires planning, organising, directing and controlling the financial activities of an organisation, which is termed as Financial Management. Financial Management is an important aspect of the finance function. The finance function is divided into three major decisions, viz. investment, financing and dividend decisions. As these decisions are interrelated, an efficient financial management can ensure optimal joint decisions. This is possible by evaluating each decision in relation to its effect on the shareholders’ wealth. Financial Management has emerged as a challenging arena for both academicians and professionals. The approach to the study of finance has evolved in recent times. It not only involves raising of funds but also mandates that the funds be put to optimum utilisation. The aim of this book is to present the concepts and theories underlying Financial Management in a systematic and comprehensive manner. There is no denying that a large number of textbooks on Financial Management are currently available. Nevertheless, it was imperative for us to complement them by a course-oriented textbook focusing on business applications in the interest of the students, especially those pursuing B.Com. Programme, B.Com. (Hons.) B.B.S., B.M.S., B.B.E., B.B.A. (FIA), M.Com., M.B.A., C.A., I.C.W.A., etc. courses of study. This book has been written in a lucid, simple and easy-to-understand language so that the beginners can comprehend important functions of Financial Management. Some of the highlights of the book are: • Each chapter has been enriched with a good number of solved examples; • To test information, understanding and application aspects of the subject, different types of numerical-oriented questions have been given at the end of each chapter; • Questions from the latest question papers of Delhi University too have been incorporated; • Theoretical questions have also been appended to each chapter; • Besides, an attempt has been made to demonstrate Practical Work in Financial Management by using Excel Spreadsheet.
