Question: Write down the Summary of your understanding within 300 Words, in an outcome oriented manner.

Financial Management is concerned with efficient acquisition (financing) and allocation (investment in assets, working capital etc.) of funds. In the modern times, the financial management includes besides procurement of funds, the three different kinds of decisions as well namely investment, financing and dividend. Out of the two objectives, profit maximization and wealth maximization, in todays real world situations which is uncertain and multi-period in nature, wealth maximization is a better objective. Today the role of chief financial officer, or CFO, is no longer confined to accounting, financial reporting and risk management. Its about being a strategic business partner of the chief executive officer. The relationship between financial management and accounting are closely related to the extent that accounting is an important input in financial decision making. There are several sources of finance/funds available to any company. All the financial needs of a business may be grouped into the long term or short term financial needs. There are different sources of funds available to meet long term financial needs of the business. These sources may be broadly classified into share capital (both equity and preference) and debt. Another important source of long term finance is venture capital financing. It refers to financing of new high risky venture promoted by qualified entrepreneurs who lack experience and funds to give shape to their ideas. Securitisation is another important source of finance and it is a process in which illiquid assets are pooled into marketable securities that can be sold to investors. Leasing is a very popular source to finance equipment. it is a contract between the owner and user of the asset over a specified period of time in which the asset is purchased initially by the lessor (leasing company) and thereafter leased to the user (lessee company) who pays a specified rent at periodical intervals. Some of the short terms sources of funding are trade credit, advances from customers, commercial paper, and bank advances etc.