BCA II Semester (Accounting and Financial Management) Unit - IV
What is Financial Management? Financial Management is all about planning, organizing, directing, and controlling the economic pursuits such as acquisition and utilization of capital of the firm. To put it in other words, it is applying general management standards to the financial resources of the firm. Scope of Financial Management To understand the financial management scope, first, it is essential to understand the approaches that are divided into two sections. Traditional Approach Modern Approach Approach 1: Traditional Approach to Finance Function During the 20th century, the traditional approach was also known as corporate finance. This approach was initiated to procure and manage funds for the company. For studying financial management, the following three points were used (i) Institutional sources of finance. (ii) Issue of financial devices to collect refunds from the capital market. (iii) Accounting and legal relationship l between the source of finance and business. In t...
