Académique Documents
Professionnel Documents
Culture Documents
Traditional Approach
Dominant upto early fifties
Concerned with procurement of funds:
Institutional arrangement
Financial instruments & procedural aspects of
capital markets
Legalities between firms & sources of funds
Limitations of traditional approach
Ignored internal decision- making
Focused on corporate enterprises only
Built around episodic events
Focus on long term financing
Scope of Financial Management
Modern approach
Provides conceptual & analytical framework for
financial decision making i.e….
It is concerned with planning,raising,controlling &
administering of funds used in the business
It covers acquisition of funds as well as their efficient
& wise allocation to various uses.
Finance function
What specific assets should an enterprise acquire?
(the investment decision)