Financial management is concerned with the planning and controlling of a firm’s financial resources. It was a branch of economics till 1890 and recently it has become a separate discipline.
The subject of financial management is of immense interest to both academicians and practicing
managers. It is of interest to academicians because the subject is still developing, and there are areas where controversies still exist for which no unanimous solutions have been found. Practicing managers are interested in this subject because the most crucial decisions of the firm are related to finance, and an understanding of the theory of financial management enables them to make those
decisions skillfully and correctly. This unit will discuss the nature and scope of finance, the financial goals of organizations and finance functions.