At the very start of the business, owners or shareholders will instantly be faced with financial matters that require financial decisions. Questions such as what assets to invest in and where to get the cash needed for such investments would require financial know-how. And as the business venture thrives, shareholders have to manage daily finances and make long-term financial decisions. All of this definitely requires more than just a little knowledge in business. It requires knowledge in an entirely different area – the area of financial management.

Defined, financial management is the process of planning financial decisions with the ultimate goal of maximizing the stockholders’ wealth. In the world of finance, financial management is also known by other names like corporate finance, business finance, and managerial finance.