Financial Management (FM) Notes for RBI Grade B
RBI Grade B Finance & Management Notes PDF. Finance & Management Introduction, Definition and Others. RBI Grade B FM Study Material PDF. As we all know that Reserve Bank of India ( RBI) released RBI Grade B Phase I Result 2019 and now next step is RBI Grade B Phase II Exam, which will be conducted on 1st December 2019.
If you are preparing for RBI Grade B 2019 ( Phase II), you will come across a section on “Finance & Management (FM) wherein 65 questions will be there carrying 100 marks. Here we are providing you important article related to Finance & Management.
RBI Grade B Finance & Management (FM) Introduction and Definition
Business concern needs finance to meet their requirements in the economic world. Any kind of business activity depends on the finance. Hence, it is called as lifeblood of business organization. Whether the business concerns are big or small, they need finance to fulfil their business activities. Hence finance may be called as capital, investment, fund etc., but each term is having different meanings and unique characters. Increasing the profit is the main aim of any kind of economic activity.
Meaning Of Finance : Finance may be defined as the art and science of managing money. It includes financial service and financial instruments. Finance also is referred as the provision of money at the time when it is needed. Finance function is the procurement of funds and their effective utilization in business concerns. The concept of finance includes capital, funds, money, and amount. But each word is having unique meaning. Studying and understanding the concept of finance become an important part of the business concern.
Definition Of Finance : According to Khan and Jain, “Finance is the art and science of managing money”.
According to Oxford dictionary, the word ‘finance’ connotes ‘management of money’. Webster’s Ninth New Collegiate Dictionary defines finance as “the Science on study of the management of funds’ and the management of fund as the system that includes the circulation of money, the granting of credit, the making of investments, and the provision of banking facilities.
Definition Of Financial Management : Financial management is an integral part of overall management. It is concerned with the duties of the financial managers in the business firm. The term financial management has been defined by Solomon, “It is concerned with the efficient use of an important economic resource namely, capital funds”.
The most popular and acceptable definition of financial management as given by S.C. Kuchal is that “Financial Management deals with procurement of funds and their effective utilization in the business”.
Howard and Upton : Financial management “as an application of general managerial principles to the area of financial decision-making.
Weston and Brigham : Financial management “is an area of financial decision-making, harmonizing individual motives and enterprise goals”.
Joshep and Massie : Financial management “is the operational activity of a business that is responsible for obtaining and effectively utilizing the funds necessary for efficient operations.
Thus, Financial Management is mainly concerned with the effective funds management in the business. In simple words, Financial Management as practiced by business firms can be called as Corporation Finance or Business Finance.
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