Fundamentals of Financial Management - MIT School of Distance Education - PowerPoint PPT Presentation

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Fundamentals of Financial Management - MIT School of Distance Education

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Financial Management is the backbone of every business whether small or vast. The success or failure of a business depends upon the management of finances. It includes planning, organizing, controlling and directing the various activities related to finance. At MIT School of Distance Education (MIT-SDE), we offer distance MBA equivalent PGDM and PGDBA courses that are a mix of theoretical and practical approach. So, if you want to enhance your employability, then pursue correspondence MBA courses from MIT-SDE. To know more information you can visit here: – PowerPoint PPT presentation

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Title: Fundamentals of Financial Management - MIT School of Distance Education


1
MIT School of Distance Education
  • Fundamentals of Financial Management

2
  • Financial Management is the backbone of every
    business whether small or vast. The success or
    failure of a business depends upon the management
    of finances. However, the term Financial
    Management is not limited to the procurement or
    allocation of money. It includes planning,
    organizing, controlling and directing the various
    activities related to finance.

3
Elements of Financial Management
  • Different elements play pivotal roles in the
    functioning of any management. Lets have a brief
    look at the basic elements of financial
    management which affects its core functioning.
  • Investment Decisions Investment decision is the
    primary element of financial management. It
    involves decisions related to investment in
    current and fixed assets. It is also termed as
    working capital decisions and capital budgeting.

4
  • Dividend Decisions Proper distribution of
    profits among the shareholders and the management
    of the company is essential. The decisions
    regarding the profit division are taken by the
    finance manager. Usually, the dividend rate is
    decided for the shareholders and some profits are
    retained in the company for its growth.

5
  • Financial Decisions There are various
    circumstances under which a company would require
    raising of finance either from internal or
    external factors. Thus, the finance manager has
    to come up with the different decisions for
    raising finances depending upon the source, cost
    or the period of financing.

6
Functions of Financial Management
  • Choice of sources of funds There are various
    choices for a company when it comes to raising
    funds. It can either be through shares
    debentures and loan from public deposits or
    different financial institutions.
  • The financial manager has to choose wisely while
    selecting the source of funds. He should give
    preference to internal sources.

7
  • Management of cash Cash management is very
    essential as it ensures constant working capital
    in the company. Various miscellaneous payments,
    remunerations, current liabilities, etc should
    usually be paid in cash by the finance manager.

8
  • Disposal of Surplus The profit earned by the
    company needs to be divided among the
    shareholders in the form of a dividend on their
    shares. Thus, the finance manager declares the
    dividend rate and after distributing the profits,
    the remaining part is retained by the company
    which is utilized for its expansion.

9
Objectives of Financial Management
  • Finance Management aims at the successful run of
    the business by managing the finances. There are
    certain objectives of financial management which
    are listed below
  • Ensure regular supply of funds in the company.
  • Ensure optimum utilization of funds so as to gain
    maximum benefit in minimum cost.

10
  • Ensure that the shareholders receive a regular
    return on their money invested. This is dependent
    upon the market price of the share and profit
    earnings of the company.
  • Maintain a proper balance between the companys
    debt and equity.

11
  • So, these were the fundamentals of financial
    management. Every finance professional must be
    aware of these basics in order to plan and
    implement effective financial management in an
    organization. At MIT School of Distance Education
    (MIT-SDE), we train the future managers and
    impart necessary managerial skills. MITSDE offer
    PG Diploma in Financial Services Correspondence
    Courses.

12
  • We offer distance MBA equivalent PGDM and PGDBA
    courses that are a mix of theoretical and
    practical approach. We also conduct webinars to
    build concepts and skills of the students. Our
    candidates are immediately absorbed in the
    industry after course completion.  So, if you
    want to enhance your employability, then
    pursue correspondence MBA courses from MIT-SDE.

13
  • THANK YOU
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