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Business Studies · 2023 · 4 marks
CBSE 2023 · Region 4 · Set 3 · Q28
Give the meaning of ‘Financial Management’. Explain any three
points that highlight the role of financial management.
Marking-scheme solution
Financial Management is concerned with management of flow of funds
and involves decisions relating to procurement of funds, investment of
funds and distribution of earnings.
Financial Management may be defined as planning, organising,
directing and controlling the financial activities of an organisation.
Points that highlight the role of financial management are:
(i)
The size as well as the composition of Fixed Assets of the business.
(ii)
The quantum of Current Assets as well as its break-up into cash,
inventories and receivables.
(iii)
The amount of long term and short-term financing to be used.
(iv)
Break-up of long-term financing into debt, equity etc.
(v)
All items in the Profit and Loss Account e.g., Interest, Expense,
Depreciation etc.
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CBSE Class 12 Business Studies past-paper question from the 2023board exam, with the answer as CBSE’s own marking scheme gives it. Where our answers come from.