Ans. This statement is
True.
1. The business
organisation irrespective of its type and nature needs finance for its
formation, for carrying out day – to – day activities, for development and expansion,
etc.
2. Financial management
is essential for all types of business organisation as it deals with
procurement of funds and their efficient and effective utilization in the
business.
3. Financial management
deals with planning, organizing, directive and controlling financial activities
of business organisations.
4. Generally all
business activities are supported by the savings which comes from the society.
Many a times these savings are not adequate to meet the financial requirement
of the business. It is therefore necessary that available scarce fund must be utilized
systematically and more efficiently.
5. Financial management
plays a very important role in making the best use of financial resources.
