ROLE OF FINANCIAL MANAGEMENT - Financial management is one of the functions of management - Financial management is concerned with o Profits and losses of operations o Control over funds o Ensuring appropriate cash flow is available o Chas management o Raising funds / controlling internal funds o Investment of funds o Cost control / pricing o Forecasting / measuring financial performance against expectations - Accounting is a subset of financial management. Financial transactions must be recorded
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questions: 1. In what long-term assets should the firm invest? (Capital budgeting) 2. How can the firm raise cash for required capital expenditures? (Capital structure) 3. How should short-term operation cash flows be managed? (Working capital management) Forms of business organization: Proprietorship- single owner Partnership- more than one owner Corporation- legal entity separate and distinct form its owners and managers. Corporations Advantages: Unlimited life- independent of owners
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Identify some situations in your life that are problematic; ones that are not going as well as you think they should. Write them as a questions. Be specific in how you describe them. Don’t just say‚ “How can I get along with my friends?” Focus it. “How can I best deal with Arthur when I feel him pressuring me to do X and I really don’t think I should be doing X?” Write a list of some further questions you should be asking about those situations. How can I manage my time effectively to still be
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Strategic Financial Management University of Phoenix Finance for Managerial Decision Making / FIN 554 Professor Greg Garay January 17‚ 2006 Table of Contents Abstract 3 Strategic Financial Management ..4 Working Capital Management .4 The Kmart Corporation Debacle ..5 Long-Term and Short-Term Strategies .. 6 Financial Performance
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1. Framework A. Identification of the risk Financial Risk There are three kinds of financial risk: market risk‚ liquidity risk and credit risk. Market Risk Price Risk The risk of a decline in the value of a security or a portfolio. Interest Rate Risk The risk that the value of an investment will change due to a change in the absolute level of interest rates. Example Dexia had a great interest rate risk. They had a lot of mortgage loans (long term). They financed the long term liabilities
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to try their hand at poetry. I also remember getting a gold star sticker and having my poem put on display outside of the classroom door along with colorful construction papers leaves around it for all to see. I was so proud! The writing contest experience taught me to be creative‚ take risks‚ that writing could be both fun and rewarding and not to be afraid to use big words in my writing. And yes‚ of course I won the contest. Gold star‚ remember? After third grade‚ I continued to write. I wrote
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Chapter 3 - NATURE OF FINANCIAL MANAGEMENT What is finance Finance can be defined as he art and science of managing money. Virtually all individuals and organizations earn or raise money and spend or invest money. Finance is concerned with the process‚ institutions‚ markets and instruments involved in the transfer of money among individuals‚ business and governments. Nature of Financial Management Financial Management as an academic discipline has undergone fundamental changes as regard
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Financial management has emerged as a distinct field of study only in the early part of this century‚ as a result of consolidation movement and formation of large enterprises. Its evolution may be divided into three phases. The Traditional phase‚ The Transitional phase and The Modern phase The Traditional Phase:This phase has lasted for about four decades. Its finest expression was shown in the scholarly work of Arthur S. Dewing‚ in his book tilted the Financial Policy
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Overview of the objectives of strategic financial management What is financial management? That part of management accounting concerned with setting financial objectives‚ planning and acquiring the optimum finance to meet them‚ and seeing that fixed and working capital are effectively managed.’ (CIMA). Two fundamental questions: 1. What investments should a firm make? Long term investments are referred to as capital investment projects’ e.g. build a new supermarket or factory. 2
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Masters of Business Administration – MBA Semester 1 MB 0041 – Financial and Managerial Accounting – Assignment Roll No. 1305015785 Name of the Student: Pallab Kakoti Email id: ksetrajna@gmail.com Mobile : 958 256 3250 Q1. Accounting is one of the oldest‚ structured management information system. Give the meaning of accounting and book keeping? Explain the objectives of accounting? Accounting‚ as an information system is the process of identifying‚ measuring and communicating the economic
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