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How Should Financial Management Be

How Should Financial Management Be?

Financial Management means the management and control of financial transactions such as the supply and use of the resources of the enterprise. However, it also means the application of general management principles to the financial resources of the enterprise. Investment decisions involve investments in fixed assets. Investing in current assets is also part of investment decisions called working capital decisions.

financial decisions; It is concerned with obtaining financing from various sources, depending on the type of source, the financing period, the cost of financing and thus the decision on returns. In the dividend decision, the finance manager has to decide on the net profit distribution. Net profits are generally divided into:

Dividend for Shareholders: Dividend and its ratio need to be decided.

Retained Profits: Depending on the expansion and diversification plans of the business, the amount of retained earnings should be finalized.

Related Education: Financial Management Education

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