Finance may be defined as the art and science of managing money. The major areas of finance are: (1) financial services and. (2) managerial finance/corporate finance/financial management. While financial services is concerned with the design and delivery of advice and financial products 10 individuals, businesses and governments within the areas of banking and related institution, personal financial planning, investments, real state, insurance and. so on. financial management is concerned with the duties of the financial managers in the business firm. Financial managers actively manage the financial affairs of any type of business, namely. financial and non-financial. private and public. large and small, profit seeking and not-for-profit. They perform such varied tasks as budgeting, financial forecasting. cash management. credit administration, investment analysis. funds management and so on. In recent years, the changing regulatory and economic environments coupled with the globalization of business activities have increased the complexity as well as the importance of the financial managers’ duties. As a result, the financial management function has become more demanding and complex. ‘This Chapter provides an overview of financial management function. It is organised into seven Sections:
• Relationship of finance and related disciplines
Scope of financial management
• Goal objectives of financial management
• Agency problem
• Organisation of the finance function
• Emerging role of finance managers in India
• An overview

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