CBSE Class 12 Business Studies Chapter 9 - Financial Class 12 Notes

Financial Management Class 12 Revision Notes

In the financial management class 12 notes, we will discuss the meaning of Business Finance. Then, will describe financial management and its role in the enterprise. Also, we will discuss the objectives of financial management and how they could be achieved. Hence, we will come to know that the primary aim of financial management is to maximize shareholder’s wealth. Moreover, we will explain the meaning and importance of financial planning. Financial planning strives to achieve twin objectives. The first is to ensure the availability of funds whenever these are required. The other is to see that the firm does not raise resources unnecessarily. Furthermore, we will study the three broad decisions under financial decision-making. Thus, we will discuss Investment, financing and dividend decisions in detail.

Then, we will study about owners’ funds’ and ‘borrowed funds’. Also, we will analyze the factors affecting the choice of an appropriate capital structure. Further, we will state the meaning of fixed and working capital. Then, analyze the factors affecting the requirement of fixed and working capital.

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Sub-topics under Financial Management:

Meaning of Business Finance: In this Sub-topic, we will discuss the meaning of Business Finance.
Financial Management and Objectives of Financial Management: Here, we will describe financial management and its role in the enterprise. Also, we will discuss the objectives of financial management and how they could be achieved.
Financial Planning: In this Sub-topic, we will explain the meaning and importance of financial planning.
Financing Decision: In this Sub-topic, we will study the three broad decisions under financial decision-making. Thus, we will discuss Investment, financing and dividend decisions in detail.
Capital Structure: We will study about owners’ funds’ and ‘borrowed funds’. Also, we will analyze the factors affecting the choice of an appropriate capital structure. Further, we will state the meaning of fixed and working capital. Then, analyze the factors affecting the requirement of fixed and working capital.