financial-management

Vocabulary Word

Definition

Financial management is all about managing an organization's money. It involves strategic planning, organizing and controlling of financial resources to reach the company's objectives.

Examples in Different Contexts

For small business operations, 'financial management' is key to ensuring the business can cover its expenses and invest in growth opportunities. A small business owner might discuss, 'Prudent financial management has allowed us to remain profitable and expand our operations.'

Practice Scenarios

Academics

Scenario:

There's been a significant increase in the scholarship allotment. We need a solid plan to disburse these funds effectively.

Response:

Agreed, with responsible financial management, we can disseminate scholarships without affecting our financial stability.

Business

Scenario:

Our quarterly report shows a decline in profit margins. It's crucial we revise our fiscal strategies.

Response:

Absolutely, good financial management practices will help us increase our profit margins.