The Role of Financial Management in a Firm

The Role of Financial Management in a Firm

For every business activity financial management is very important, without managing finance properly the company will leads to higher cost of business and flaws in business process. There are different aspects of finance which have to be considered and understood by a company so that the finance can be managed effectively and efficiently. These aspects are cash cycle and capital management, liability, modes of investment, liquidity ratio and financial stability (Brigham & Houston, 2011).

A manager should understand the importance and characteristics of financial markets consisting of their ...