Financial Management - Its Definition, Meaning and Objectives - Ishank Rastogi Definition : One needs money to make money. Finance is the life-blood of business and there must be a continuous flow of funds in and out of a business enterprise. Money makes the wheels of business run smoothly. Sound plans, efficient production system and excellent marketing network are all hampered in the absence of an adequate and timely supply of funds. Sound financial management is as important in business as production and marketing. A business firm requires finance to commence its operations, to continue operations and for expansion or growth. Finance is, therefore, an important operative function of the business. A large business firm has to raise funds from several sources and has to utilise those funds in alternative investment opportunities. In order to ensure the most judicious utilisation of funds and to provide a reasonable rate of return on the investment, sound f