Financial Management means planning, organizing, directing, and controlling the financial activities such as procurement and utilization of funds of the enterprise. It means applying general management principles to the financial resources of the enterprise.
The focus of this Financial Management Diploma programme is the management of financial resources in a business. You will learn how to make:
- Investment decisions: Investment decisions include investment in fixed assets (called capital budgeting). Investment in current assets is also a part of investment decisions called working capital decisions.
- Financial decisions: They relate to the raising of finance from various resources which will depend upon the decision on the type of source, a period of financing, cost of financing, and the returns thereby.
- Dividend decision: The finance manager has to make a decision with regards to the net profit distribution. Net profits are generally divided into two:
- Dividend for shareholders: Dividend and the rate of it has to be decided.
- Retained profits: The amount of retained profits has to be finalized which will depend upon the expansion and diversification plans of the enterprise.