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What is financial management?

Financial management can be defined as the management of the finances of an organisation in order to
achieve the financial objectives of the organisation. The usual assumption in financial management for the
private sector is that the objective of the company is to maximise shareholders’ wealth.

Financial targets may include targets for: earnings; earnings per share; dividend per share; gearing
level; profit retention; operating profitability.

Source: BPP, Financial Management

 

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