Importance of studying financial management

Financial management is very important for both individuals and organizations because it deals with managing the funds. The important of financial management is stated below: 

(a) Individuals point of view (ব্যক্তির ক্ষেত্রে গুরুত্ব): investment project. 

(i) It helps individuals to select best 

(ii) It helps to analyze risk of proposed investment project. 

(iii) Financial management helps individual to make optimum use of money. 

(iv) For an individual financial management will help to save more and thus invest more. 

(v) It helps to protect investment of individuals. helps to maximize the investors wealth. 

(vi) Financial management 

(vii) It increases social welfare. 

(viii) It increases the opportunity of employment. 

(ix) It attracts the prospective investors. 

(b) Firm's point of view (ফার্মের ক্ষেত্রে গুরুত্ব): Financial management plays a vital role in running a business organization. 

1. Expansion of business (ব্যবসায় সম্প্রসারণ): For long term sustainability and growth business organization needs additional fund. The financial management helps to provide new fund for expansion of business organization. 

2. Providing working capital (চলতি মূলধনের যোগান): Only fixed assets and equipment's cannot ensure smooth production process. Working capital is very much necessary to run the production process Financial manager takes proper action for required working capital. 

3. Proper management of money (অর্থের যথাযথ ব্যবহার): With the study of financial management we can protect the business from mis-management of money. 

4. Analysis of cost and risk (খরচ ও ঝুঁকি বিশ্লেষণ): Financial management helps us to analyze the cost of capital and risk of the project. It teaches us that we should think about cost, risk and control in business organization. 

1. Expansion of business (ব্যবসায় সপ্রসারণ): For long term sustainability and growth business organization needs additional fund. The financial management helps to provide new fund for expansion of business organization. 

2. Providing working capital (চলতি মূলধনের যোগান): Only fixed assets and equipment's cannot ensure smooth production process. Working capital is very much necessary to run the production process. Financial manager takes proper action for required working capital. 

3. Proper management of money (অর্থের যথাযথ ব্যবহার): With the study of financial management we can protect the business from mis-management of money. 

4. Analysis of cost and risk (খরচ ও ঝুঁকি বিশ্লেষণ): Financial management helps us to analyze the cost of capital and risk of the project. It teaches us that we should think about cost, risk and control in business and borrowed money must be minimum. 

5. Dividend policy (লভ্যাংশ নীতি): Every firm must have a stable dividend policy. To satisfy the shareholders need dividend is essential. Financial management helps to create a sound dividend policy. 

6. Establishment of business (ব্যবসায় স্থাপন): Financial management helps to establish and select new business project. Through proper methodological process financial management evaluates the feasibility of a project and helps the promoters to establish a new business. 7. Others (অন্যান্য): 

(i) Financial management helps to dissolve the business. 

(ii) It helps in facing unexpected risk. 

(iii) It supports credit sales.