Ans. Effective financial management offers several benefits, including:- Improved profitability: By making informed financial decisions, financial management can enhance the profitability of the company.- Better cash flow management: Financial management helps in monitoring and managing cash flow effectively, ensuring that the company has sufficient funds to meet its obligations.- Reduced financial risk: Effective financial management helps in identifying and managing financial risks, reducing the potential impact of adverse events on the company's financial stability.- Enhanced decision-making: Financial management provides accurate and timely financial information, enabling management to make informed decisions regarding investments, financing, and resource allocation.- Increased shareholder value: By optimizing financial resources, financial management can increase the value of the company and generate higher returns for the shareholders.