Answer:
Yes, it is concerned with inflow and outflow of money and taking decisions regarding procurement and utilization funds. The importance of financial management are discussed below: (any four) (i) Sound financial plan facilitates the smooth functioning of operations in an organisation. (ii) Finance is required at every stage and for performing activities like distribution, promotion, production, etc. Through financial management, one can analyse the need and requirement of finance to carry out operations. (iii) Financial management provides complete coordination between various functional areas such as marketing, production, etc to achieve organisational goals. If financial management is defective, the efficiency of all other departments cannot be maintained. (iv) Financial management provides scientific analysis of all the facts and figures, through which it helps in taking decisions. (v) Financial management plays a very important role in the success of the business organisation by advising the top management on the solutions to various financial problems. Thus, we can say that financial management plays a key role in the success of business.
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