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Q: What is financial management ? A: Financial management involves planning, organizing, and controlling an organization's financial resources to achieve its financial goals and objectives. Q: What is the primary goal of financial management ?  A: The primary goal of financial management is to maximize shareholder wealth, often measured by the stock price or the market value of the company. Q: What is working capital management ? A: Working capital management refers to the management of a company's short-term assets and liabilities to ensure it has enough liquidity to meet its short-term obligations. Q: What is the difference between financial forecasting and budgeting ? A: Financial forecasting predicts future financial outcomes, while budgeting involves setting specific financial targets and allocating resources to achieve those targets. Q: What are the key components of a financial statement? A: The key components of a financial statement include the balance sheet, income st...

 Financial management encompasses various key areas: Financial Planning: Financial planning involves setting long-term and short-term financial goals and developing strategies to achieve them. It includes forecasting future financial needs, estimating revenues and expenses, and creating budgets. A well-designed financial plan provides a roadmap for allocating resources and helps in making informed financial decisions. Budgeting: Budgeting is the process of creating a detailed plan for the organization's financial activities. It involves estimating income and expenses for a specific period and allocating funds accordingly. Budgeting helps in controlling costs, managing cash flow, and monitoring the financial performance of different departments or projects within an organization. Cash Flow Management: Cash flow management is crucial for maintaining the liquidity and solvency of an organization. It involves monitoring and controlling the inflow and outflow of cash to ensure that ther...