Class 12 Business Studies — Chapter 1: Financial Management

What you'll learn

• ▸Business Finance: Meaning and Need
• ▸Financial Management: Meaning and Role
• ▸Primary Objective of Financial Management
• ▸The Three Core Financial Decisions
• ▸Investment Decision and Capital Budgeting
• ▸Working Capital Management
• ▸Factors Affecting Capital Budgeting Decisions

Chapter Summary

--- PAGE 1 --- CHAPTER 9 FINANCIAL MANAGEMENT LEARNING OBJECTIVES After studying this chapter, you should be able to: > explain the meaning of business finance; > describe financial management; > explain the role of financial management in our enterprise; > discuss objectives of financial management and how they could be achieved; > explain the meaning and importance of financial planning; > state the meaning of capital structure; > analyse the factors affecting the choice of an appropriate capital structure; > state meaning of fixed capital and working capital; and > analyse the factors affecting the requirement of fixed and working capital. When Tata Steel Acquired Corus Tata Steel, the biggest steel producer in the Indian private sector acquired Corus, a Dutch Steel Company in a deal worth 12 billion USD in 2007. A financial decision of this magnitude has significant implicitness for both Tata Steel and Corus as well as their employees and…

Practice Questions from this Chapter

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1. Explain financial management simply. Get Solution →
2. Define fixed and working capital. Get Solution →
3. Describe an ideal capital structure. Get Solution →
4. According to the text, what is the definition of business finance? Get Solution →
5. What is the primary aim of financial management? Get Solution →
6. What is another name for a long-term investment decision? Get Solution →
7. Financial Management is concerned with the optimal procurement and what other activity? Get Solution →
8. Which two financial statements are mentioned as reflecting a firm's financial health? Get Solution →

Did you know?

• 💡 The first coins were made in ancient Lydia over 2,500 years ago.
• 💡 Before money, people traded goods directly using a system called bartering.
• 💡 The word "salary" comes from the Roman practice of paying soldiers with salt.
• 💡 The largest banknote ever printed was a 100-billion-mark note in Germany.
• 💡 Some ancient cultures used large, heavy stones with holes as their currency.

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