Overview of Financial Management December 30, 1899

KLE SOCIETY’S DEGREE COLLEGE

Permanently Affiliated to Bangalore Univrsity

Nagarabhavi, Bengaluru-72

Department of UG

Bachelor of Commerce

SUBJECT
3rd SEM SEP-FINANCIAL MANAGEMENT
Mrs. SUMA N., [Link] , KSET, (MBA).

Assistant Professor

Department of Commerce

Financial Management 1
Overview of Financial Management December 30, 1899

SYLLABUS
MODULE 1: OVERVIEW OF FINANCIAL MANAGEMENT
Introduction- Meaning of Finance, Finance Function, Objectives of Finance function, Organization of Finance
function -Meaning and definition of Financial Management; Goals of Financial Management, Scope of
Financial Management, Functions of Financial Management, Role of Finance manager in India- Financial
planning- Steps in financial Planning Principles of a sound financial plan and Factors affecting financial plan.

MODULE 2: TIME VALUE OF MONEY

Introduction – Meaning & definition- Importance –Future Value; Single Flow – Uneven Flow & Annuity –
Present Value; Single Flow, Uneven Flow & Annuity – Doubling Period – Concept of Valuation – Valuation of
Bonds & Debentures – Preference Shares – Equity Shares – Simple Illustrations
MODULE 3: FINANCIAL DECISIONS
Investment Decision-Meaning and Definition of Capital Budgeting, Features, Significance – Steps in Capital
Budgeting Process. Techniques of Capital budgeting: Traditional Methods – Pay Back Period, and Accounting
Rate of Return – DCF Methods: Net Present Value- Internal Rate of Return under Trail & Error Method using
Interpolation & Extrapolation and Profitability Index- Illustrations

MODULE 4: INVESTMENT DECISIONS

Introduction-Meaning and Definition of Capital Budgeting, Features, Significance Steps in Capital Budgeting
Process. Techniques of Capital budgeting: Traditional Methods Pay Back Period, and Accounting Rate of
Return DCF Methods: Net Present Value- Internal Rate of Return and Profitability Index- Illustrations.

MODULE 5: & DIVIDEND DECISIONS & EXCEL UTILITY

Dividend Decision - Meaning - Types of Dividends – Types of Dividends Polices – Significance of Stable
Dividend Policy - Determinants of Dividend Policy - Dividend Theories - Theories of Relevance – Walter’s
Model and Gordon’s Model –Illustrations
Excel Utility - Creation of Organization Chart for Finance using Excel Shapes – Designing a Financial Plan
for Startup with Variables – Calculation of PV, PVAF and IRR, PBP, DCF Methods using excel utilities and
formulas, Annuity Vs Lumpsum Analysis –Leverage Calculator – Capital Budgeting Calculations

Financial Management 2
Overview of Financial Management December 30, 1899

MODULE 1: OVERVIEW OF FINANCIAL

MANAGEMENT

INTRODUCTION:
The term "finance" in our simple understanding it is perceived as equivalent to 'Money'. But finance
exactly is not money, it is the source of providing funds for a particular activity. Finance is the foundational
layer on which businesses are setup and run. Access to finances can enable a firm to expand and grow.
Similarly, lack of funding can lead to restrained operations and in extreme cases cause a financial collapse of
the business altogether. Irrespective of the nature of business, finance is a critical resource which needs to be
managed efficiently for a smooth and successful running of companies and markets. Financial management is
the process by which a firm creates and implements a financial system which enables it to achieve its goals and
drive shareholder value via optimum resource utilization and deployment in various asset classes.

MEANING OF FINANCE
Finance refers to the acquisition, allocation, and management of financial resources, including
investments, funding, and risk management. It encompasses various activities, such as financial planning,
budgeting, forecasting, and analysis.
Finance encompasses lending and borrowing, saving, investing, and providing funding for new
projects.

DEFINITION:
“Finance is the management and use of money to make more money, direct the use of money, or
maintain wealth”.

FUNCTIONS OF FINANCE:
1. Financial Planning: Financial planning involves creating a comprehensive roadmap for financial
decisions. This includes:
 Setting financial goals and objectives
 Identifying available resources (e.g., funding, personnel)
 Developing strategies to achieve financial goals
 Establishing a financial framework for decision-making

2. Funding and Investment: Funding and investment involve acquiring and allocating financial
resources to support business operations and growth. This includes:
 Raising capital through various sources (e.g., equity, debt, grants)
 Investing in assets, projects, and businesses that align with financial goals
 Allocating funds to maximize returns and minimize risk

3. Risk Management:

Financial Management 3
Overview of Financial Management December 30, 1899

Risk management involves identifying, assessing, and mitigating potential financial risks. This
includes:
 Identifying market risk (e.g., fluctuations in interest rates, commodity prices)
 Assessing credit risk (e.g., default risk, creditworthiness)
 Mitigating operational risk (e.g., internal processes, systems failures)
 Implementing risk management strategies (e.g., hedging, diversification)

4. Financial Analysis: Financial analysis involves analyzing financial data to inform decision-making.
This includes:
 Financial statement analysis (e.g., balance sheet, income statement)
 Ratio analysis (e.g., liquidity, profitability, efficiency ratios)
 Trend analysis (e.g., identifying patterns and trends in financial data)
 Using financial analysis to evaluate investment opportunities and financial performance

5. Financial Control: Financial control involves monitoring and controlling financial performance.
This includes:
 Budgeting and forecasting financial performance
 Variance analysis (e.g., identifying deviations from budgeted performance)
 Implementing corrective actions to address financial deviations
 Ensuring compliance with financial regulations and standards

OBJECTIVES OF FINANCE FUNCTION:

 Ensuring Profitability:
The finance function plays a crucial role in driving profitability by managing resources effectively,
optimizing investments, and controlling costs. This includes making informed financial decisions, assessing
risks, and ensuring capital is allocated to the most profitable projects.
 Liquidity Management:
Maintaining adequate liquidity (enough cash to meet short-term obligations) is a key objective. This
involves managing cash flow, tracking liquidity levels, and ensuring the company can meet its obligations in
a timely manner.
 Maximizing Wealth:
Finance objectives often include maximizing the wealth of the company's owners or shareholders. This can
be achieved through a combination of factors, including profitability, efficient asset management, and
prudent risk management.
 Risk Management:
The finance function plays a critical role in managing financial risks, such as those related to market
fluctuations, interest rate changes, and currency exchange rates. This involves identifying, assessing, and
mitigating potential risks to protect the company's financial health.
 Efficient Capital Allocation:

Financial Management 4
Overview of Financial Management December 30, 1899

The finance function is responsible for allocating capital to the most profitable investments and projects,
ensuring the company is maximizing its returns. This includes evaluating investment opportunities,
determining the optimal capital structure, and raising funds when needed.
 Financial Planning and Analysis:
FP&A helps align financial goals with overall business objectives by forecasting future financial
performance, budgeting, and analyzing variances. This involves creating financial models, conducting
sensitivity analyses, and providing insights to support informed decision-making.
 Financial Reporting:
The finance function is responsible for preparing and presenting financial statements, providing accurate
and reliable information to stakeholders. This includes preparing income statements, balance sheets, cash
flow statements, and other financial reports.
 Compliance:
The finance function ensures the company complies with relevant financial regulations and reporting
standards. This includes complying with accounting standards, tax regulations, and other legal
requirements.

ORGANIZATION OF FINANCE FUNCTION

INTRODUCTION

Financial Management 5
Overview of Financial Management December 30, 1899

In the context of Financial Management, the Finance Function refers to all activities related to the planning,
acquisition, utilization, and control of financial resources in an organization. To execute these functions
efficiently, a structured Organization of Finance Function is essential.
This structure ensures clarity of roles, smooth decision-making, and effective management of a firm’s
financial activities. The Finance Function typically operates under the supervision of the Chief Financial
Officer (CFO) and includes two major divisions: Treasury and Controllership.

Hierarchical Structure of Finance Function

1. Board of Directors (BoD)
 Top governing body in the corporate structure.
 Provides strategic direction and approves key financial policies.
 Ensures that financial decisions are aligned with shareholders’ interests and long-term goals.
 Oversees major decisions like capital budgeting, mergers, dividend declaration, etc.
 Plays a key role in corporate governance and financial accountability.
2. Managing Director (MD)
 Acts as a link between the Board and the Management Team.
 Implements financial strategies and plans approved by the Board.
 Coordinates with the CFO to ensure financial policies support overall business objectives.
 Plays a vital role in financial planning and control at the top management level.
3. Chief Financial Officer (CFO)
 Head of the Finance Function and a key figure in Financial Management.
 Responsible for financial planning, analysis, budgeting, forecasting, and reporting.
 Ensures efficient utilization of financial resources.
 Oversees risk management, capital structure, liquidity, and investment decisions.
 Leads both Treasury and Controller divisions.

TWO CORE DIVISIONS UNDER CFO

A. Treasurer Division
Focuses on external financial management, such as fund raising, cash flow, investments, and financial risk.
i. Capital Expenditure Manager
 Evaluates and approves long-term investments in fixed assets.
 Supports capital budgeting, an essential part of financial management.
 Aims to maximize returns on capital projects.
ii. Cash Manager
 Manages daily cash flow and ensures liquidity.
 Prepares cash budgets and handles short-term financing.
 Ensures funds are available for operational needs—core to working capital management.
iii. Credit Manager
 Formulates and implements credit policies.

Financial Management 6
Overview of Financial Management December 30, 1899

 Analyzes creditworthiness of customers and minimizes bad debts.

 Contributes to receivables management, part of current asset management.
iv. Fund Raising Manager
 Raises funds through equity, debt, or hybrid instruments.
 Negotiates with banks, investors, and financial institutions.
 Aims to minimize cost of capital and balance the firm’s capital structure.

B. Controller Division
Handles internal financial management, including accounting, compliance, and performance measurement.
i. Tax Manager
 Ensures compliance with direct and indirect tax regulations.
 Manages tax planning and strategy, which affects cash flow and profitability.
 Important for reducing tax liability legally—impacting overall financial efficiency.
ii. Corporate Accounting Manager
 Prepares and maintains corporate financial statements.
 Ensures consistency with financial reporting standards (e.g., IFRS, GAAP).
 Facilitates decision-making through accurate and timely financial data.
iii. Cost Accounting Manager
 Tracks and controls operational costs.
 Helps in cost analysis, product pricing, and cost control strategies.
 Supports managerial decision-making and budgeting.
iv. Financial Accounting Manager
 Maintains books of accounts as per statutory requirements.
 Prepares Balance Sheet, Profit & Loss Account, and Cash Flow Statements.
 Ensures legal compliance and supports financial transparency.

CONCLUSION
The Organization of Finance Function is vital for the successful implementation of Financial Management
practices. By structuring the finance department into Treasury and Controllership, a company ensures:
 Proper financial planning and budgeting
 Effective fund management
 Regulatory compliance
 Informed financial decision-making
This clear division of roles supports the primary goals of financial management—profit maximization,
wealth maximization, and efficient resource utilization—thereby contributing to the overall success and
sustainability of the business.

FINANCIAL MANAGEMENT

Financial Management 7
Overview of Financial Management December 30, 1899

Meaning:
Financial Management refers to the strategic planning, organizing, directing, and controlling of
financial activities such as procurement and utilization of funds in a business. It involves managing the
company’s finances to achieve business objectives efficiently and profitably.

In simple words, Financial Management is concerned with the effective and efficient use of funds to
maximize the value of the firm.

Key Aspects of Financial Management:

 Raising of funds from different sources
 Allocation of funds to profitable projects
 Managing working capital
 Controlling financial resources and decisions

Definitions:
 Joseph Massie:
“Financial management is the operational activity of a business that is responsible for obtaining and
effectively utilizing the funds necessary for efficient operations.”
 Howard and Upton:
“Financial management involves the application of general management principles to the financial
resources of the enterprise.”

Example:
A company like Tata Motors uses financial management to decide:
 How much capital to raise from banks and investors
 How to allocate it across manufacturing, marketing, and R&D
 How to control costs and ensure profits

GOALS OF FINANCIAL MANAGEMENT

Financial management focuses on setting and achieving financial goals. The two primary goals are:

A. Profit Maximization
The aim is to earn the maximum possible profit during a financial year.
Features:
 Traditional goal
 Focus on short-term gains
 Suitable for small or individual businesses
Advantages:
 Simple and easy to understand
 Highlights business success

Financial Management 8
Overview of Financial Management December 30, 1899

 Encourages efficiency
Limitations:
 Ignores risk and uncertainty
 Ignores timing of returns
 Doesn’t consider the interests of stakeholders like employees and society

B. Wealth Maximization (Shareholders’ Value Maximization)

Wealth maximization refers to increasing the value of shareholders by increasing the market value of shares.
Features:
 Modern and comprehensive goal
 Focus on long-term growth
 Considers risk and time value of money
Advantages:
 Ensures financial health of the firm
 Reflects long-term value
 Satisfies stakeholders like investors, employees, customers, etc.
Limitations:
 Market fluctuations can misrepresent real value
 Requires complex calculations

Comparison Table: Profit Maximization vs. Wealth Maximization

Basis Profit Maximization
Wealth Maximization
Focus Short-term earnings
Long-term value of the firm
Objective Maximize profit
Maximize shareholder wealth
Consideration of Risk Not considered
Considered
Time Value of Money Ignored
Considered
Measurement Net profit
Market value of shares
Approach Traditional
Modern

SCOPE OF FINANCIAL MANAGEMENT

Financial Management 9
Overview of Financial Management December 30, 1899

The scope defines the areas or activities where financial management is applied. It covers all financial
aspects of a business.
Main Areas of Scope:
A. Investment Decisions (Capital Budgeting):
 Deciding where to invest the available funds
 Long-term investment in assets, projects, machinery
 Tools: Payback period, NPV, IRR
B. Financing Decisions:
 Deciding the sources of funds: equity, debt, or a mix (capital structure)
 Choosing between short-term and long-term financing
 Balancing risk and cost of capital
C. Dividend Decisions:
 How much of profit to distribute as dividends
 How much to retain for reinvestment
 Affects shareholder satisfaction and growth
D. Working Capital Management:
 Managing short-term assets and liabilities
 Ensuring liquidity and smooth operations
 Involves managing cash, inventory, receivables, payables

Other Areas:
 Financial planning and forecasting
 Cost control and reduction
 Financial risk management
 Valuation of firm

FUNCTIONS OF FINANCIAL MANAGEMENT

Financial Management performs several key functions to support business objectives. These are broadly
divided into managerial and routine functions.

A. Primary (Managerial) Functions:

1. Investment Decision:
 Choosing profitable projects
 Capital budgeting decisions
 Example: Investing ₹50 lakhs in new machinery
2. Financing Decision:
 Choosing mixes of own funds (equity) and borrowed funds (debt)
 Goal: Minimize cost and maximize returns
3. Dividend Decision:
 Deciding how much profit to share with shareholders

Financial Management 10
Overview of Financial Management December 30, 1899

 Retained earnings vs. dividends

4. Liquidity Decision:
 Ensuring sufficient cash to meet day-to-day operations
 Managing current assets and liabilities

B. Secondary (Routine) Functions:

 Maintaining proper records of financial transactions
 Cash management
 Preparing financial reports and analysis
 Monitoring cost and implementing cost control techniques
 Managing tax and compliance matters
 Managing relations with investors and financial institutions

Role of Finance Manager:

 Financial planning and analysis
 Fundraising and capital structuring
 Cost control and budgeting
 Ensuring legal and ethical compliance in financial practices
 Communicating with stakeholders and investors

Conclusion:
Financial Management is a vital function in every business organization. It ensures that the firm:
 Uses its financial resources effectively
 Takes informed investment and financing decisions
 Maintains profitability, liquidity, and growth
 Maximizes the value of the firm for all stakeholders
Understanding these core concepts lays the foundation for further study and professional application in the
fields of finance, accounting, and business management.

ROLE AND FUNCTIONS OF A FINANCIAL MANAGER

Introduction:
A Financial Manager plays a vital role in managing the financial resources of a business. Their main
responsibility is to ensure that the business has enough funds to operate effectively and that these funds are
used efficiently to achieve the company’s goals. In the modern business environment, the role of a financial
manager has become more strategic and analytical.

Who is a Financial Manager?

A Financial Manager is a professional responsible for managing the company’s finances, including:

Financial Management 11
Overview of Financial Management December 30, 1899

 Planning financial activities

 Organizing financial resources
 Controlling and monitoring the use of funds
The financial manager ensures that the company earns good returns, remains solvent, and creates value for
its shareholders.

Role of a Financial Manager

The role refers to the overall importance and responsibility of a finance manager in an organization.
1. Custodian of Finance
 Ensures proper utilization of funds
 Prevents misuse or waste of money
2. Planner and Strategist
 Prepares financial plans and forecasts for the company
 Helps top management in strategic decision-making
3. Advisor to Management
 Gives expert advice on financial matters like investments, funding, risks, and budgeting
4. Wealth Maximizer
 Ensures that the value of the company increases in the long run
 Aims to increase shareholders’ wealth through smart financial decisions
5. Risk Manager
 Identifies financial risks and takes steps to reduce or avoid them
6. Liaison Officer
 Communicates with banks, investors, government agencies, tax authorities, and regulators like SEBI,
RBI, etc.

Functions of a Financial Manager

The functions of a finance manager are the specific tasks and duties performed on a regular basis.
1. Financial Planning and Forecasting
 Estimates the company’s financial needs (short-term and long-term)
 Plans how much capital is needed and how it will be used
 Helps avoid cash shortages or surpluses
Example: Planning a ₹10 crore budget for a new product launch.

2. Investment Decision (Capital Budgeting)

 Decides where to invest the available funds for maximum returns
 Evaluates projects using tools like NPV, IRR, and Payback Period
 Balances risk and return
Example: Choosing between building a new factory or expanding an existing one.

3. Financing Decision (Capital Structure)

Financial Management 12
Overview of Financial Management December 30, 1899

 Decides how to raise funds — whether through equity, debt (loan), or a mix
 Tries to keep the cost of capital low while minimizing risk
Example: Choosing between a bank loan or issuing shares to the public.

4. Dividend Decision
 Decides how much of the profit should be distributed to shareholders and how much should be retained
for future growth
 Affects shareholder satisfaction and future investments
Example: Declaring a dividend of ₹5 per share and retaining the rest.

5. Working Capital Management

 Manages current assets (cash, inventory, debtors) and liabilities (creditors, bills)
 Ensures the company has enough liquidity to meet daily operations
Example: Managing inventory levels and collecting payments from customers on time.

6. Financial Control and Reporting

 Controls all financial activities using tools like budgeting, internal audits, and variance analysis
 Prepares financial reports and statements like Profit & Loss Account, Balance Sheet, and Cash Flow
Statement

7. Cost Control and Reduction

 Identifies areas where expenses can be reduced without affecting quality
 Helps improve profit margins and competitiveness

8. Risk Management
 Identifies financial risks such as interest rate risk, credit risk, or foreign exchange risk
 Applies techniques like insurance, hedging, and diversification to manage these risks

9. Legal and Regulatory Compliance

 Ensures the company follows laws related to finance such as Companies Act, Income Tax Act, GST,
etc.
 Files necessary reports and returns to government authorities

10. Coordination and Communication

 Coordinates with other departments (marketing, production, HR) to align financial planning with
business goals
 Communicates financial performance to management and stakeholders

Conclusion

Financial Management 13
 Overview of Financial Management December 30, 1899

The Finance Manager is a key person in any business. Their role is not just about handling money, but also
about making important financial decisions that impact the company’s future. A good finance manager
ensures:
 Proper use of financial resources
 Achievement of financial goals
 Growth and stability of the business
 Compliance with laws and ethical practices
Understanding these roles and functions is essential for anyone pursuing a career in finance or business
management.

FINANCIAL PLANNING
Financial planning is the task of determining how a business will afford to achieve its strategic goals
and objectives. Usually, a company creates a Financial Plan immediately after the vision and objectives have
been set.
Definition of Financial Planning
Financial Planning is the process of estimating the capital required and determining its competition. It is the
process of framing financial policies in relation to procurement, investment, and administration of funds of
an enterprise.

STEPS IN FINANCIAL PLANNING

Whether the business is big or small, existing or a new business, this function has to be performed. At
the time of promotion, this function is performed by the promoter.
1. Establishing objectives:
• Business enterprise operates in a dynamic society and in order to take advantage of the changed economic
conditions, financial planning should establish both short term and long run objectives.
• Financial objective of any business enterprise is to employ capital in whatever proportion necessary to
increase the productivity of remaining factors of production over the long run.
• The long run goal of any firm is to use capital in correct proportion. The financial objective should be
clearly defined.
• The concern should take advantage of prevailing economic situation.
2. Formulating financial policies:
Financial policies are guides to all action which deals with procuring, administrating and
distributing the funds of business firms. These policies may be classified into several broad categories:
 Policies governing the amount of capital required by the firm to achieve their financial objectives.
 Policies to achieve and determine control by the parties who furnish the capital.
 Policies which act as a guide in the use of debt or equity capital.
 Policies which guide management in the selection of sources of funds.
 Policies which govern credit and collection activities of an enterprise. These should be clear cut plans of
raising the required funds and their possible uses. The current and future needs for funds should be
considered in the financial plans.

Financial Management 14
 Overview of Financial Management December 30, 1899

3. Forecasting:
• A fundamental requisite is the collection of facts.
• However, where financial plans concern the future and facts are not available, financial management is
required to forecast the future in order to predict the variability of factors influencing the type of policies the
enterprise formulates.
• This involves a thorough study of the company's past performance to identify trends.
• These trends are projected into the future and modified taking into account events or trends expected to
occur in the future.

4. Formulation of Procedures:
• Financial planning are broad guides which to be executed properly, must be translated into detailed
procedures.
• If a policy is to raise short-term funds from banks, then a procedure should be laid to approach the lenders
and the persons authorized to initiate such action.
• Financial planning is the work of top management.
• Financial planning is a part of a larger planning process in an organization.
5. Providing for flexibility:
• The financial planning should ensure proper flexibility in objectives, policies and procedures to adjust
according to the changing economic situations.
• The changing economic environment may offer new opportunities.
• The business should be able to make use of such situations for the benefits of the concern.
• A rigid financial planning will not let the business use new opportunities.

PRINCIPLES OF SOUND FINANCIAL PLANNING

 The plan must be simple: Now-a-days you have a large variety of securities that can be issued to
raise capital from the market. But it is considered better to confine to equity shares and simple fixed
interest debentures.
 It must take a long-term view: While estimating the capital needs of a firm and raising the
required funds, a long-term view is necessary. It ensures that the plan fully provides for meeting the
capital requirement on long term basis and takes care of the changes in capital requirement from year
to year.
 It must be flexible: While the financial plan is based on long term view, one may not be able to
properly visualize the possible developments in future. Not only that, the firm may also change its
plans of expansion for various reasons. Hence, it is very necessary that the financial plan is capable
of being adjusted and revised without any difficulty and delay so as to meet the requirements of the
changed circumstances.
 It must ensure optimal use of funds: The plan should provide for raising reasonable amount of
funds. As stated earlier, the business should neither be starved of funds nor have surplus funds. It
must be strictly need based and every rupee raised should be effectively utilized. There should be no
idle funds.

Financial Management 15
Overview of Financial Management December 30, 1899

 The cost of funds raised should be fully taken into account and kept at the lowest possible
level: It must be ensured that the cost of funds raised is reasonable. The plan should provide for a
financial mix (combination of debt and equity) that is most economical in terms of cost of capital,
otherwise it will adversely affect the return on shareholders’ funds.
 Adequate liquidity must be ensured: Liquidity refers to the ability of a firm to make available the
necessary amount of cash as and when required. It has to be ensured in order to avoid any
embarrassment to the management and the loss of goodwill among the investors. In other words, the
investment of funds should be so planned that some of these can be converted into cash to meet all
possible eventualities.

FACTORS AFFECTING FINANCIAL PLAN

 Economic conditions: interest rates, inflation, and market conditions, can significantly impact a
financial plan.
 Regulatory environment: Compliance with laws and regulations related to finance and accounting is
crucial in shaping planning strategies.
 Organizational goals and objectives: The goals of an organization influence the direction and
priorities of any planning efforts.
 Risk tolerance: Every organization has its own capacity and willingness to take on financial risks. This
risk-taking capacity affects the decisions made in the process.
 Market dynamics: Competition, customer behavior, and industry trends influence financial planning
strategies.
 Internal factors: Internal factors such as resources, capabilities, and the organization’s financial
position impact the scope and feasibility of the planning process.
 Technological advancements: How an organization uses technology and automation can influence
how you create a good financial plan. It also helps to improve accuracy.
 Stakeholder expectations: The expectations and requirements of stakeholders, such as investors,
lenders, and shareholders, shape the financial planning goals.
 Tax considerations: Understanding and planning for tax implications is essential in optimizing
financial outcomes.
 Human resources: The availability of skilled financial professionals and their expertise play a vital
role when creating an effective financial plan.

Financial Management 16