Financial management is a process of managing the assets and liabilities of an individual or a business entity that has some form of capital. It includes activities such as risk management, capital budgeting, and asset allocation. The nature of financial management is that it helps in estimating capital requirements, decides the capital structure of a company, select the appropriate sources of finance and manages the cashflows.
Financial management deals with the collection, processing and use of financial resources. When it comes to personal finance, it also involves managing income and expenses in order to achieve financial goals. The nature of financial management is that it is a dynamic process that can be done in different ways depending on the situation. For example, nature might change when we are dealing with a large company or when we are dealing with our own small business.
Financial management is the process of deciding what money to use, how much to save, and how much to spend. It also includes the process of planning for future needs and managing risks. The nature of financial management is that it involves a lot of decision making and risk assessment. All these decisions are made with the goal in mind that you will be able to achieve your goals in the future.
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