What Role Should The Financial Manager Play In A Modern Enterprise?

1. What is the key goal that guides the decisions of financial managers? What challenges do financial managers face when they try to find the best sources and uses of funds to meet this goal?

Financial Management is an important aspect of how a business operates efficiently. The way that the finances are controlled can determine how successful the company is. The finances of a business allows for the growth of the company. The five practices of financial management: capital structure decision, investment appraisal techniques, dividend policy, working capital management and financial performance assessment are critical when assessing a company. The performance of a company plays a key role on how successful the company is on meeting goals. There are different strategies and tools that a company can implement and if they are used to effectively the company can meet their goals. If a company has good finances, a good

Financial Management: “The process for and the analysis of making financial decisions in the business context.” (Cornett, Adair, & Nofsinger, 2016, p. 5).

The finance function and its relation to other decision-making areas in the firm; the study of theory and techniques in acquisition and allocation of financial resources from an internal management perspective.

The point of profit maximization for the firm in the given scenario occurs at a quantity of 8 units. At this point they have maximized their profit and as you can see to go beyond this point would cause the firm to incur economic losses.

b. As a financial manager, my focus would be on improving the firm’s cash flow and cash return on investments by determining which units in the business are generating or depleting the firm’s cash.

In order for any business to be successful they would need to know how to make the most profit for the goods they are producing and selling.

Explain how a profit maximizing firm determines its optimal level of output, using marginal revenue and marginal cost as criteria:

know what it is exactly, in order to assess the extent to which the accounting profit reflects

Finance is the study of applying specific value to things we own, services we use and decisions we make. Financial management is the process for and the analysis of making financial decisions in the business context. The major subareas of finance are investments, financial management, financial institutions, market, and international finance. Risk is a potential future negative impact to value and or cash flow. It is often discussed in terms of probability of loss and the expected magnitude of the loss.

Management and investors are often more interested in the return earned on the funds invested than in the

This is the first pace in financial. It is the duty of financial manager to primarily recognize the goals of the company. The subsequently responsibility is to decide on the suitable steps that have to be applied achieve the goals of the company (Baker and Baker, 2007, p. 6).

Hence, the tasks involved in Financial Management include: Ø Analysing financial needs Ø Forecasting financial needs Ø Managing working capital Ø Planning capital structures Ø Organising financial operations Ø Monitoring and controlling finances etc. In fact raising funds and allocating funds for business are the two prime financial management tasks.

With maintaining many of the features , the ninth edition of Fundamental of Corporate Finance brings into clear focus the designed and developed explicit for course in business for both finance major and non-majors alike. The role of corporate finance manager as decision maker and stress for managerial input and judgment. Today finance manager assume to avoid block box approach to finance and where appropriate, the approximate pragmatic nature of financial analysis is made explicit, possible pitfalls are described.

Determining the profit of a business is another major part of management. Profit is the total income that you receive after paying all of your debts. All debts include for example rent, wages, and interest. A general formula to calculate profit is P = R - C. This says when total revenue is subtracted from