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Book Title Financial Management Text, Problems, and Cases Authors M. Y. Khan and P.K. Jam Edition Sixth - 2011 ISBN-13 978-0-07-106785-0 Pages Not given Publisher Tata McGraw-Hill Pubig. Co. Ltd., New Delhi.
The essence of success of any business organization is successful financial management. Even though each department in any business organization is equally important, what will be the fate of the organization if the finance department is important but not effective? We all know that what had happened in the US during last three years and what kind of financial management has led to the crisis. The miserable failures of financial giants in the US remind us of the added importance of an effective financial management system in every organization. With this in mind I have reviewed the new edition of the Book" Financial Management" written by two famous authors, who are veterans in 'financial studies.'
Financial Management is the management of the finance of a business / organisation in order to achieve financial objectives. Taking a commercial business as the most common organisational structure, the key objectives of financial management would be to:
* Create wealth for the business
* Generate cash, and
* Provide an adequate return on investment bearing in mind the risks that the business is taking and the resources invested.
There are three key elements to the process of financial management:
(1) Financial Planning
Management need to ensure that enough funding is available at the right time to meet the needs of the business. In the short-term, funding may be needed to invest...