Importance of Financial Management.

Q4.  What is importance of financial management?

Ans. Importance of financial management are as follows:

  1. Best use of scarce resources at time of requirement.
  2. No production stoppage due to non- availability of fund.
  3. No idle money so cost of capital decreases.
  4. Better financial negotiation with financial institution.
  5. Increase value of firm by decreasing overall cost of capital.

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