Chapter 3 Introduction to Managerial Finance PDF

Okay, here is the converted markdown format of the attached document or image: ### **Image 1** The image of a slide with a green calculator on the upper left-hand side. The slide is titled "Chapter III Introduction to Managerial Finance." The slide also has the phrase "Virtue is living a life of mo...

Okay, here is the converted markdown format of the attached document or image: ### **Image 1** The image of a slide with a green calculator on the upper left-hand side. The slide is titled "Chapter III Introduction to Managerial Finance." The slide also has the phrase "Virtue is living a life of moral excellence." --- ### **Image 2** The image of a slide with a green calculator on the upper left-hand side. The slide is titled "Finance". Here is a summary of the key points on the slide: - Management of money or the money resource itself. - Discipline concerned with identifying, evaluating, and managing sources and uses of cash in order to increase the value of the business enterprise to its present owners. --- ### **Image 3** The image of a slide with a green calculator on the upper left-hand side. The slide is titled "Management". Here is a summary of the key points on the slide: - Utilization of the organization's scarce resources to maximize the attainment of its goals and objectives. - Social process of working with and through others to achieve organizational objectives in a changing environment. - Manager - leads, directs, supervises, communicates, innovates, plans, controls, and represents the company to outsiders. --- ### **Image 4** The image of a slide with a green calculator on the upper left-hand side. The slide is titled "Importance of Management". Here is a summary of the key points on the slide: - Through management, organizational goals and objectives are attained. The success of an organization depends on how well its people manage the business. Business owners gauge management by how well they attain the objectives of the firm. **Components of Management** 1. Achievement of goals and objectives 2. Working with and through people 3. Maximization of limited resources by achieving productivity through efficiency and effectiveness 4. Coping with a changing environment --- ### **Image 5** The image of a slide with a green calculator on the upper left-hand side. The slide is titled "The 8 Ms of Management": 1. Men - the human resource and the most important of all the resources. 2. Money - funds needed for business operations to achieve profit maximization. 3. Materials - resources needed by manufacturing firms in producing goods for sale; raw materials that are converted into finished products. 4. Methods - processes used in manufacturing goods and services. --- ### **Image 6** The image of a slide with a green calculator on the upper left-hand side. The slide continues "The 8 Ms of Management": 5. Machine - equipment used for production, for the store, for the office and other aspects of business operation. 6. Market - place, people, and firms where and to whom the products are sold. 7. Moment - time that needs to be efficiently managed; deadlines are set, reports are to be submitted on time, etc. 8. Media - radio, TV, newspapers, magazines, the web/Internet. --- ### **Image 7** The image of a slide with a green calculator on the upper left-hand side. The slide titled "Financial Management". Here is a summary of the key points on the slide: - Concerned with the management of funds; otherwise called Managerial Finance. - The efficient and effective allocation, acquisition, and utilization of funds; acquisition of funds should always be at the least cost and such funds need to be channeled (utilized) to fund projects or investments that will maximize benefits, including profit (although not always), to the organization; utilization of funds obtained should be able to maximize: wealth, the value of the company, and the value of stakeholders. --- ### **Image 8** The image of a slide with a green calculator on the upper left-hand side. The slide titled "Finance Department Organizational Chart". Here is a description of the organizational chart in markdown format. ``` CFO | Comptroller/Finance Manager | -------------------------------------------------------------------- | | | | | | Purchasing Investment Budget & Planning Cash Management & Treasury Risk Management & Insurance | Chief Accountant | Credit & Collection A/R | A/P | Payroll & Tax | General Accounting | Audit ``` **Legends:** - CFO - Chief Finance Officer - A/R - Accounts Receivable - A/P - Accounts Payable --- ### **Image 9** The image of a slide with a green calculator on the upper left-hand side. The slide is titled "Goals of The Financial Manager": 1. Acquisition of funds with the least cost from the right sources at the right time 2. Effective cash management 3. Effective working capital management 4. Effective inventory management 5. Effective investment decisions 6. Proper asset selection 7. Proper risk management --- ### **Image 10** The image of a slide with a green calculator on the upper left-hand side. The slide is titled "Tools of Financial Managers": 1. Financial Policy-making - selecting financial goals, developing financial policies, and designing the finance organization to carry out the finance function. 2. Financial Planning - setting the course of actions (plans) to attain goals; involves budgeting and forecasting, that is, projecting revenues and expenditures, projecting cash flows, projecting capital expenditures, etc. 3. Financial Analysis - process of evaluating business performance, projects, investment options, and other finance-related activities to determine feasibility and profitability. --- ### **Image 11** The image of a slide with a green calculator on the upper left-hand side. The slide is titled "Careers in finance": - Managerial Finance – broadest of the areas and has the greatest number of career opportunities; concerned with the management of funds-efficient and effective allocation, acquisition, and utilization of funds. - Investment - brokerage firms, financial institutions, insurance companies, mortgage companies; deals with investments where savers with idle cash can make such idle cash earn - generally in the next area of money and capital markets. - Money and Capital Markets - short-term placements of cash are in the money market; long-term placements are in the capital market.