The root of business finance is the Government policy, which again is very much compliant with the viewpoint of ancient financial wisdom. However, there is a essential difference here , in comparision to modern financial progress and complexity of environment , the financer will take a role of facilitator rather than controller .The globalization and liberalization has merged the national economy with global economy . This brings eventually a tough situation, as Nation worked with boundaries, and there specifics to exercise control . However, when we talk about a vaster geography, across nations , we don’t have institution which could exercise this control. The ancient financial wisdom talks about acquisition and maintenance of Mother earth . Modern financial management talks about acquisition , maintenance and creating growth for the business . There is a fundamental difference here , whereis ancient financial wisdom is talking about acquisition and maintenance, it is talking from the viewpoint of welfare of the subjects and satisfying them. On Contrary, financial management is talking from the viewpoint of acquisition and maintenance and growth of a small group of people which is known as shareholders . The subjects of ancient financial wisdom are broader and involves a country and its inhabitant.
The problems we face now, in the economic context are
1) National economy and world economy has got fused with globalization and liberalization.
2) Business are subjected to multiple regulatory framework which in itself is diversified and not integrated.
3) The Government policies are still rooted on national boundaries whereas business has to most deal with something beyond national boundaries.
In a whole, the modern financial management does give a idea about acquisition of funds and growth of them as a primary objective, and makes the statement that it could be done with facilitation – which means delegation of the control to different people.
The delegation if it has to be done ,it has to be done to right kind of power, who have proper sense control, and who don’t fall in the circle of greed . The basic objective of the financial managers, is to make the benefit of the shareholders, and grow and make profit for the fund which has been procured . This brings a very big question about the responsibility of the shareholder and the financial manager . What is there responsibility ? Is it just to grow in material world and make profit ? What is the cost of that profit ? How that profit could be balanced with the social and environmental agenda . How those people could be created who could have right spiritual values to handle the funds which are delegated to them and the authority given to them to manage the funds .
It seems that the basic function of Modern financial management, is more related to a small entity, rather than a larger entity call Mother Earth.However the viewpoint of ancient financial wisdom is based on Mother Earth, which makes it more appropriate on the terms of understanding and practice.