Financial Management comprises of planning, organizing, directing and controlling the commercial activities of an enterprise. It also involves applying general management principles to the financial resources of an enterprise. In some sense, insurance appears simultaneously with the appearance of human society. There are two types of economies in human societies. The first one is the money economy which comprises of markets, money and financial instruments. The second one is non-money or natural economies that do not have money, markets, and financial instruments and is more ancient compared to the first type.

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