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BRILLIANT’S Conceptual Framework of Finance Functions 21

(c) Raising funds from a combination of vari- (c) {d{^Þ òmoVm| H$mo g_pÝdV H$aVo hþE \§$S> H$s ì`dñWm
ous sources. H$aZmŸ&
One of the notable features of traditional Cnamoº$ {~ÝXwAm| go ñnï> h¡ {H$ Q´>o{S>eZb EàmoM _|
approach was that financial manager was not \$m`ZopÝe`c _¡ZoOa H$mo `h {ZU©` Zht H$aZm hmoVm Wm {H$
concerned with the decision that how the funds
\§$S> H$m Cn`moJ {H$g àH$ma {H$`m Om`oJmŸ& Cgo {g\©$ `h
will be allocated. He was just required to see that
what total value of funds should be invested in XoIZm hmoVm Wm {H$ {H$VZo \§$S> H$m {~OZog _| BÝdoñQ> H$a
the business. Similarly he was required to see {X`m J`m h¡Ÿ& gmW hr Cgo \$m`ZoÝg Ho$ {d{^Þ òmoVm| _| go
that what should be the type of capital that has
C{MV òmoV H$m M`Z H$aZm hmoVm WmŸ&
to be raised.
The weaknesses of traditional approach Q´>o{S>eZb EàmoM _| Hw$N> AmYma^yV H${_`m§ Wt& Bg
were fundamental. The main shortcoming of EàmoM H$s g~go ~‹S>r H$_r `h Wr {H$ Bg_| Ho$db \§$S> H$s
traditional approach was that it was confined àm{ßV na Ü`mZ {X`m J`m VWm CgHo$ C{MV T>§J go Cn`moJ
to the scope of the procurement of funds and dmco nhcy H$mo AZXoIm {H$`m J`m Omo {H$ \$m`ZopÝe`c
totally neglected the important dimension of
allocation of funds. The modern approach _¡ZoO_|Q> H$m A{YH$ _hËdnyU© nhcy h¡Ÿ& BZ H${_`m| H$mo Xya
provides a solution to these shortcomings. H$aZo Ho$ {c`o _m°S>Z© EàmoM H$m OÝ_ hþAmŸ&
(B)Modern Approach- Effective Utiliza- (B) _m°S>Z© EàmoM- \§$S> H$m à^mdr Cn`moJ
tion of Funds
Since 1950, the utility of traditional ap- 1950 Ho$ XeH$ VH$ _m°S>©Z EàmoM H$s Cn`mo{JVm _|
proach was changed to a great extent. Due to ~hþV n[adV©Z hwAmŸ& Vrd« Am¡Úmo{JH$aU, H${R>Z à{VñnYm©
rapid industrialisation, intense competition VWm {~OZog _| ~‹T> aho gaH$mar hñVúmon Ho$ H$maU `h
and increasing government interference, it was _hgyg {H$`m OmZo cJm {H$ {~OZog Am°J}ZmBOoeZ Ho$
realised that the firm's financial resources \$m`ZoÝg Ho$ òmoVm| H$m R>rH$ T>§J go Cn`moJ {H$`m OmZm
should be properly utilised. A number of deci- AË`ÝV Amdí`H$ h¡Ÿ& BgHo$ {c`o ~hþV-gr {S>grOZ _oqH$J
sion making techniques were developed. As a Q>opŠZŠg H$m {dH$mg {H$`m J`mŸ& n[aUm_ñdê$n \$m`ZopÝe`c
result, the scope of financial management also _¡ZoO_|Q> Ho$ úmoÌ _| ^r n[adV©Z hþEŸ& g~go _hËdnyU© n[adV©Z
changed. Now the emphasis of finance and `h hþAm {H$ A~ \$m`ZoÝg Ed§ _¡ZoO[a`c àm°ãcåg H$m
managerial problems was shifted from rais- \$moH$g \§$S> H$s àm{ßV go {eâQ> hmoH$a \§$S> Ho$ à^mdr T>§J
ing of funds to the effective use of funds. go Cn`moJ na hmo J`m&
The modern approach is more analytical \$m`ZopÝe`c _¡ZoO_|Q> H$s _m°S>©Z EàmoM {H$gr \$_© H$s
way of looking into the financial problems of _¡ZoO[a`c àm°ãcåg H$mo XoIZo d CZH$m {dícofU H$aZo _|
the firms. In the words of Solomon, "The cen- A{YH$ à^mdemcr h¡Ÿ& gmocmo_Z Ho$ eãXm| _| ""\$m`ZopÝe`c
tral issue of financial policy is the use of funds. nm°{cgr H$m Ho$ÝÐ {~ÝXw \§$S> H$m R>rH$ T>§J go Cn`moJ H$aZm
It is helpful in achieving the broad financial h¡Ÿ& Bggo {H$gr B§Q>aàmBO H$mo CZ CÔoí`m| H$mo àmßV H$aZo
goals which an enterprise sets for itself." _| ghm`Vm {_cVr h¡, Omo g§ñWm Zo {ZYm©[aV {H$`o h¢Ÿ&""

Objectives of Financial Management \$m`ZopÝe`c _¡ZoO_oÝQ> Ho$ CÔoí`
Financial management is concerned with \$m`ZopÝe`c _¡ZoO_|Q> AgoQ²>g H$s _mÌm Ed§ CZHo$
decision making with regard to the size and g§Vw{cV g§`moOZ Ho$ gå~ÝY _|o {ZU©` H$aZo go gå~pÝYV