Introduction to Financial Management

Summary on Financial Management
The role of the finance function
This business help manager to manage on financial function into following:
  • Strategic management is developing the formulation on long-term plan.
  • Operations management is refer to day-to-day decision making and control.
  • Risk management refer to the way to take risks face by business controlled or managed. 
Three categories from above cannot be separate and distinct areas. They are related between each categories.

The tasks of the finance function can be set out below as:
  • Financial planning is proposals on financial performance position input to planning process. This is developing on financial statement such as cash flow statement, profit statement and other financial course. 
  • Investment project appraisal is the profitability and riskiness of proposed investment. Manager can informed decision on accept or reject or prioritization.
  • Financing decision 
  • Capital market operations 
  • Financial control can be provide information on the profitability of investment projects, levels of working capital (เงินทุนหมุนเวียนในการดำเนินกิจการ) and cash flows (กระแสเงินสด). 
The essential features of financial management
Economies of time and risk
Economic risk is the chance that macroeconomic conditions like exchange rates, government regulation, or political stability will affect an investment, usually one in a foreign country.

Economic risk is one reason international investing carries more risk than domestic investing. Shareholders and bondholders often bear the economic risk undertaken by international companies like Company XYZ. Investors who purchase and sell foreign government bonds are also exposed.
source: http://www.investinganswers.com

Capital market is part of economic theories that help to understand about stock market and banks. This is bring borrowers and lenders together.

Shareholder wealth maximization  





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