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Financial management is one of the most important functions of the company. It is the area in which the financial resources of the company are allocated and budgeting, risk management and financial reporting are carried out. The main function of financial management is that how you are financing in your business. Basically a company has three sources of cash flows including cash flows from operating activities, investing activities and financing activities. And financial management deals with all decisions related to financing activities. In any business there are limited financial and material resources and the function of the financial management is to allocate the financial resources rightly and to get maximum out of them.
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