Podcast
Questions and Answers
What is the primary focus of financial management?
What is the primary focus of financial management?
- Maximizing the value of the firm for stockholders (correct)
- Maximizing the value of the firm for customers
- Maximizing the value of the firm for competitors
- Maximizing the value of the firm for employees
Who do financial managers (FM) typically report to?
Who do financial managers (FM) typically report to?
- Chief Marketing Officer (CMO)
- Chief Operating Officer (COO)
- Human Resources Manager
- Financial director (FD) (correct)
What does short term working capital management in financial management primarily focus on?
What does short term working capital management in financial management primarily focus on?
- Current assets and current liabilities (correct)
- Strategic planning
- Market expansion
- Long-term investments
What does financial management entail in addition to the day-to-day management of funds?
What does financial management entail in addition to the day-to-day management of funds?
What is the overall goal of financial management?
What is the overall goal of financial management?
What does financial management entail in addition to ensuring profitability, expenses, cash, and credit?
What does financial management entail in addition to ensuring profitability, expenses, cash, and credit?
Who are financial managers (FM) specialized professionals directly reporting to?
Who are financial managers (FM) specialized professionals directly reporting to?
What does financial management generally focus on in terms of short term working capital management?
What does financial management generally focus on in terms of short term working capital management?
How is the role of financial management seen in relation to senior management?
How is the role of financial management seen in relation to senior management?
What is financial management also involved with in addition to day-to-day management of funds?
What is financial management also involved with in addition to day-to-day management of funds?
Flashcards
Primary Focus of Financial Management?
Primary Focus of Financial Management?
Maximizing the value of the firm for stockholders.
Who do Financial Managers Report to?
Who do Financial Managers Report to?
Financial director (FD).
Short Term Working Capital Management Focus?
Short Term Working Capital Management Focus?
Current assets and current liabilities.
Financial Management Entail?
Financial Management Entail?
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Overall Goal of Financial Management?
Overall Goal of Financial Management?
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Financial Management Involves?
Financial Management Involves?
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Who are FMs?
Who are FMs?
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Financial Management Focus Regarding Short Term?
Financial Management Focus Regarding Short Term?
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Financial Management's Role?
Financial Management's Role?
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Financial Management Also Involved With?
Financial Management Also Involved With?
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Study Notes
Financial Management
- Concerned with profitability, expenses, cash, and credit
- Aims to maximize the value of the firm for stockholders
- Responsible for the efficient acquisition and deployment of short- and long-term financial resources
Objectives
- Ensure the objectives of the enterprise are achieved
Financial Managers (FM)
- Specialized professionals directly reporting to senior management
- Often report to the Financial Director (FD)
- Function is seen as 'staff', and not 'line'
Role of Financial Management
- Concerned with short-term working capital management
- Focuses on current assets and current liabilities
- Manages fluctuations in foreign currency and product cycles
- Often involves hedging
Overlapping Functions
- Overlaps with treasury management
- Involved with long-term strategic financial management
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