Function of Financial Management: Concept, Objectives & Functions ( Unit 10: Tourism Management)

For my tourism bachelor, it will transform your dream into reality. We'll Good afternoon, my dear students. be Today, we are going to learn the financial management. right So, first of all, you have to understand what is the objective of financial management. What is the objective? Next, we will learn the scope and approach of financial management. back. These scopes are based on the traditional scope and approach and modern scope. Then, you talk in English. Today, first of all, we have to understand what are the objectives of financial management. Number one, the profit maximization. Number two, wealth maximization. So wealth maximization is also related. Also related, EVA, economic value added. Economic value added, EVA. EVA and economic value added means performance. Economic value added means a performance measure to determine existing propose which is not okay. What are the, there are two types of scope of financial management, traditional scope and modern. Apart from that, we will understand the function of financial management. What are the important functions? Financial management function can be divided, can be divided in investment decision, financing decision and dividend policy. Investment, financing and dividend policy. I mean, where's my musician? Investment decision is related to short-term asset management, short-term current asset management, and long-term asset management is related to fixed assets. Short-term current asset management is related to the working capital, and long-term current asset management is related to the capital value. In my next talk, I will give you a little bit about the working capital, about the capital value. This is my goal to teach you. Now, we will try to understand the function of financial management. Now, we will try to remember working capital management is related to cash management, receivable management, and inventory management. And capital management is related to the investment portfolio. It can be divided. And now, we will try to understand the financial management case, the financial management process. Thank Financial management. Financial management is a strategic plan. The very important point is the strategic planning, organizing, you directing, controlling of an organization's resources very to achieve what they achieve, to achieve as they add shareholder value much. and ensuring the long-term success. These are the main. What are the key elements of financial management? Number one, financial plan. The financial planning focuses on the future need and creating budgets, second important thing is the investment decision. So my dear student, try to remember the investment decision is related with the capital. The capital budgeting investment decision allocates the resources for what got to hit that provides the best return. This is the main objective. You have decided. You have decided. Next important area is our working capital match. What we have become managing day-to-day, day-to-day cash flow, which is inventory, payable, and risk management is another important part of financial management, protecting the company from financial losses, ensuring the regulatory compliance. These are the parts of the risk. Now we try to understand the function of financial management to invest in decision, to invest in decision is the function of financial management. What are the key aspects of investment decision? This is because of long-term capital values. Second, portfolio investment, choosing between the differing aspects of profit, like stock, bond, ETF, next, short term, doing short term working capital, getting the equity, cash, and inventory. What are the key factors? Consider the investment decision, number one, risk appetite, how much risk an investor can take, one, interest rate, high rate of a reduced investment, low rate, incurring. Market trend is another important area, economic indicator and economic cycle is related to market trend and time horizon, the period for which the money can be. What are the evolution tools? What are the evolution tools of investment decision? Evolution tool is the return on investment, that is the ROI. Evaluation profitable, net present value effort, evaluate the long term value, payback period, how quickly an investor pays for it. So these are the important area for the investment decision. Next important function of financial management is the financial decision. What is the financial decision? The function of financial management, financial decision. So financial decision determine how company raise capital for operation and growth. How they operate, the debt capital. Focusing on the debt capital, debt capital with a loan, bond and equity, equity with share and retainer, the three important areas of the financial system. What are the three aspects? Number one, debt and equity. Debt provides the partner without diluting ownership, but advocates and leads the investment. While equity avoids the great pressure, but it is worth it. What are the key factors that have to deliver positional influence by cost of capital? Key factors are cost of capital, cash flow stability, market condition, and tax rate. These are the key aspects of scenario. Third, number one, data leakage. Number two, important decisions are influenced by the factors. Number three is the capital structure. Capital structure strategy means getting to balance the debt and equity to make it sustainable in some ways. This is an important area of the capital in financing business. Financing is really worked with the debt and equity. Debt means the loan or bond, loan-bond equal to the share. And also worked with the weekend. What is the activity of the financial decision, financial or activity of the financial, financial function of finance, which is also the part of function of finance, function of finance, that is, that is dividend decision. What is dividend decision? Dividend decision determines what portion of companies, what portion of companies' net earnings will be paid out the shareholder activity. The key factors are profitability, cash liquidity and growth opportunity are the important factors of the dividend and there are different types of dividend, cash dividend, distributed dividend, bonus dividend, stock dividend and special dividend generally decided by the board of the dividend. So these are the important functions of finance, functions of financial management. We have understood today investment decision, financial decision and dividend policy. So these are our important area of financial management. This topic is very very helpful to solve our interesting question based on financial management. In my next, on my next class I will discuss the another important topic of financial management working capital and capital budgeting technique of financial management and after that I will give the important previous question to help you to solve the previous question by the help of this So, in touch with this channel, with many queries, you can... You can send your message to my page.