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Q. Explain about Modern Approach of financial management?
The modern approach considers the term financial management in a broad sense. According to this approach the finance function covers both acquisitions of funds as well as their efficient utilization. According to this approach the financial management is concerned with the solution of three major problems relating finance:
(1) What is the total amount of funds an enterprise should commit?
(2) How must the funds required be raised?
(3) In what precise assets the enterprise should invest its funds? Therefore in the modern approach the financial management is responsible for taking three decisions.
What are the benefits of Traditional approach Traditional approach had a very narrow perception and was devoid of an integrated conceptual and analytical framework. It had pre
State the term nature of financial instruments. Nature of financial instruments (securities): Financial instruments (termed as securities) can be classifies in two broad
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