<Li> Survival of company is an important consideration when the financial manager makes any financial decisions . One incorrect decision may lead company to be bankrupt . </Li> <Li> Maintaining proper cash flow is a short run objective of financial management . It is necessary for operations to pay the day - to - day expenses e.g. raw material, electricity bills, wages, rent etc . A good cash flow ensures the survival of company . </Li> <Li> Minimization on capital cost in financial management can help operations gain more profit . </Li> <Li> It is vague: - There are several types of profits before interest, depreciation and taxes, profit before taxes, profit after taxes, cash profit etc </Li>

Financial management is an integral part of general management