Preview

Financial Assignement

Satisfactory Essays
Open Document
Open Document
476 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Financial Assignement
Introduction to Finance |

-------------------------------------------------
STUDENT NAME: Alison Bierlaire (BA 1)
-------------------------------------------------
STUDENT ID: 11342
-------------------------------------------------
SOURCE | TITLE: Fundamentals of Financial Management,
-------------------------------------------------
Chapter 1: The role of Financial Management,
-------------------------------------------------
Page 14, Question 6 & 10

Q.6: What are the three major functions of the financial manager? How are they related?

As we know, a financial manager concerns the acquisition, financing and management of asset with some overall goal in mind.
From this definition we can extract the three major function of the financial manager: * Taking investment decision: this function concerns the choice of optimal size of the firm, the specific asset that should be reduced and asset that should be acquired. * Taking financing decision: in this function, the financial manager takes decision about the type of financing, financing mix and dividend policy. * Taking asset management decision: in this function, the financial manager has to manage existing asset efficiently.

The link between those three functions is easy to see: the cost of financing and managing an asset that is going to be acquired is a significant element that can influence all the different investment decision that a financial manager can take.
Also, the acquisition of different asset can only be the result of a deep understanding of existing assets (asset management) combined to some financial decision (financing decision).

Q.10: How does the notion of risk and reward govern the behaviour of the financial managers?

“No pain, no gain” is an expression that can clearly illustrate the relation that exist between risk and reward. In other words, good reward (gain) will only come


References: | Investopedia Staff. "Financial Concepts: The Risk/Return Tradeoff." Investopedia – Educating the World about Finance. Investopedia US, n.d. Web. 13 Feb. 2013. Investopedia Staff. "Financial Risk." Definition. Investopedia US, n.d. Web. 13 Feb. 2013. Knight, Rebecca. "Risk and Reward." Financial Times. The Financial Time Limited, 24 Oct. 2011. Web. 13 Feb. 2013.
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Good Essays

    Fin370 Define Financial Terms
    • 659 Words
    • 3 Pages

    Fin370 Define Financial Terms

    o Finance is the financial management associated with maintaining and creating financial significance or financial. The finance role determines how decisions are made, investing assets, replacing assets, borrowing bank money, stocks and bond decisions, extending credit, and cash preservation prosperity.…

    • 659 Words
    • 3 Pages
    Good Essays
    Read More
  • Powerful Essays

    Hcs/405 Week 2 Individual Assignment
    • 1103 Words
    • 5 Pages

    Hcs/405 Week 2 Individual Assignment

    Financial management in simple terms is a management of finances for an organization. The goal of financial management is to achieve financial objectives, and can be broken down into four phases. The four elements of financial management are: planning, controlling, organizing and directing, and decision making (Baker & Baker, 2009). In the planning phase financials managers need to pinpoint the organizations objectives and the necessary steps to achieve those (Baker & Baker, 2009). In the controlling phase it is all about ensuring that each department is following the guidelines set forth in the planning stage. This can be accomplished by comparing quarterly reports to see if the departmental goals are being followed. When in the organizing and directing phase it is important for managers to use the organizations resources and to work on a daily basis to make sure the organization is running smooth and according to plan. In the last phase decision making in fact coincides with all the other three phases (Baker & Baker, 2009). Decisions will always need to be put into action during all four phases of financial management.…

    • 1103 Words
    • 5 Pages
    Powerful Essays
    Read More
  • Better Essays

    Hcs/405 Week 2
    • 1095 Words
    • 5 Pages

    Hcs/405 Week 2

    Depending on the purpose of each task there are four basic elements of financial management. These basic elements are: planning, controlling, organizing and directing, and decision making. Planning consists of identifying the organization’s objectives and the steps that need to be taken to achieve the objective. Planning could also be described as identifying the problem and what needs to be done to fix the problem. The controlling step includes making sure the plans established in the planning step are being followed through with throughout the organization. Managers often accomplish this task by reviewing reports from before and after the plan was put into effect to see the areas of the organization that are not being effective with the new plan and show management which areas need extra attention. When in the organizing and directing stage of financial management, management needs to make sure all of the organization’s resources are being properly utilized to the fullest extent. Daily review of the efficiency of the organization’s resource use will ensure maximum efficiency when the plan is finalized. The decision making stage should actually be happening throughout the financial management process. Management needs to be able to evaluate and analyze each bit of information in order to make informed…

    • 1095 Words
    • 5 Pages
    Better Essays
    Read More
  • Satisfactory Essays

    Hcs 405 Financial Reporting Practices And Ethics Paper
    • 252 Words
    • 2 Pages

    Hcs 405 Financial Reporting Practices And Ethics Paper

    There are four different elements used in financial management. These elements include: planning, controlling, organizing and directing, and decision making.…

    • 252 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Hcs 405 Reporting Practices and Ethics
    • 729 Words
    • 3 Pages

    Hcs 405 Reporting Practices and Ethics

    Within financial management there are four fundamental elements to consider: planning, organizing, controlling, and decision-making. Planning includes a step-by-step process that influences decisions in revenue and organizational goals. Organizational management must intercede between personnel and the induction of financial planning. A financial manager is accountable for decisions made during the planning process. All information assembled and forecasted will aid in informed decisions and positive outcomes (Baker & Baker, 2011).…

    • 729 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    HCS 405: Financial Practices And Ethics
    • 776 Words
    • 4 Pages

    HCS 405: Financial Practices And Ethics

    There are four major elements that can be discussed when dealing with the issue of financial management in…

    • 776 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Reporting Practices and Ethics Paper
    • 833 Words
    • 4 Pages

    Reporting Practices and Ethics Paper

    The four elements of financial management are; planning, controlling, organizing and directing and decision making. Planning is the identifying of the objectives of the organization and revealing the steps required to accomplish the goals that the organization has set forth to conquer. Controlling is making sure that each area and individual of the organization is following the plans that have been established to the very letter. The manager often uses feedback from reports to see where the organization may need attention and to see what area needs attention in order to be affective. Ensuring that each member of the team is doing their part to make sure that the organization is successful. Organizing and directing is deciding how to use the resources of the organization to most effectively carry out the plans that have been arranged and show each member of the organization how to do so effectively. The manager or team leader would get involved on a day to day basis working hands on with the other members to make sure that the organization is running…

    • 833 Words
    • 4 Pages
    Good Essays
    Read More
  • Good Essays

    Reporting Practices and Ethics Paper
    • 821 Words
    • 4 Pages

    Reporting Practices and Ethics Paper

    The third element is organizing and directing, deciding what resources are most effective and how to use those resources. The purpose is to run the organization smoothly, effectively and that comes with daily supervision of all the elements described so far. The last element of financial management is decision making. Managers make choices among the available information and alternatives given in the reports, logs, tracking made. All his or her decisions rely on this information; this is why it…

    • 821 Words
    • 4 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Critical Essay
    • 442 Words
    • 2 Pages

    Critical Essay

    ValiantCorp is a corporation that earned $3 per share before it paid any taxes. ValiantCorp retained $1 of after tax earnings for reinvestment, and distributed what remained in dividend payments. If the corporate tax rate was 30% and dividend earnings were taxed at 12.5%, what was the value of the dividend earnings received after tax by a holder of 100,000 shares of ValiantCorp?…

    • 442 Words
    • 2 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Auditing: Effective Internal Control
    • 1300 Words
    • 6 Pages

    Auditing: Effective Internal Control

    a. Describe the functions that should be segregated to provide good internal control over financial investments.…

    • 1300 Words
    • 6 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Nature vs Nuture
    • 2112 Words
    • 9 Pages

    Nature vs Nuture

    both the mix and the type of assets found on the firm 's balance sheet.…

    • 2112 Words
    • 9 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Robert
    • 4093 Words
    • 17 Pages

    Robert

    6. Generally be able to identify the different aspects of the corporate financial decision making process…

    • 4093 Words
    • 17 Pages
    Powerful Essays
    Read More
  • Good Essays

    Introduction To Financial Management
    • 1150 Words
    • 5 Pages

    Introduction To Financial Management

    Finance is the study of applying specific value to things individuals own to include services used and decisions determined [Finance by Cornett, M. M., Adair, T. A., & Nofsinger J. (2014). M: Finance (2nd ed.)]. In simple words, finance is how much value is attributable to goods and services and the basis of such attribution.…

    • 1150 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Reporting Practices and Ethics Paper
    • 1027 Words
    • 5 Pages

    Reporting Practices and Ethics Paper

    There are four identifiable elements of financial management, which are planning, controlling, organizing and directing, and decision-making. The planning process identifies the organization’s objectives and the steps required for accomplishing those objectives (Baker & Baker, 2011). Planning is beneficial to organizations because it predetermines the course of action to be followed, improves the quality of decision-making, and produces a sense of ownership and identification with organization goals (Raman, 2009). Controlling ensures each area of the organization is following the plans that have been established, thereby shaping the intricate nature of the organization. Organizing and directing is establishing how to use the resources of the organization effectively and how to run the organization efficiently. The final process, which is decision-making, is making the best choice after carefully analyzing and evaluating…

    • 1027 Words
    • 5 Pages
    Good Essays
    Read More
  • Good Essays

    Health Care
    • 821 Words
    • 4 Pages

    Health Care

    “The four elements of financial management are: planning, controlling, organizing and directing, and decision making (Hearle, 2009) p.g 56.” The elements are based on the purpose of each task. Planning identifies the steps that must be taken to accomplish the organizations objectives. Controlling makes sure each are of the organization is following the plans established. Decision making allows the financial manager to make decisions among available alternatives, and Organizing and Directing allows the financial manager to effectively carry out established plan by utilizing the organization resources.…

    • 821 Words
    • 4 Pages
    Good Essays
    Read More

Related Topics