Read the passage given below and answer the given questions. Some words may be highlighted for your attention.
Financial management is concerned with the planning and controlling of the financial resources of the firm. In the past, when it was simply a branch of economics, it was treated as the raising of funds. But, at present, it is used in a broader sense, which includes the efficient use of resources in addition to procurement of funds.
The academic thinking relating to the objective of financial management has undergone changes over the years. Fortunately, a number of management skills and decision-making techniques were developed which facilitated implementing the optimum allocation of a firm’s resources. In other words, the approach and scope of financial management changed, i.e., the emphasis shifted from raising of funds to the efficient and effective use of funds or from episodic financing to the managerial financial problems. The modern approach is an analytical way of viewing the financial problems of a firm, making it an integral part of the overall management.