Write the meaning of financial management.

Financial management refers to the planning, organizing, directing, and controlling of financial activities of an organization to achieve its objectives efficiently and effectively. It involves making decisions related to fund procurement, investment, and utilization of funds to maximize shareholder value while ensuring financial stability and growth.

Key aspects include:

• Capital budgeting: Deciding on long-term investments.
• Capital structure: Determining the optimal mix of debt and equity.
• Working capital management: Ensuring liquidity for day-to-day operations.
• Risk management: Protecting the firm from financial uncertainties.

In essence, financial management ensures that an organization’s financial resources are used optimally to meet its strategic goals.