1ST MIDTERM Flashcards
(119 cards)
● is one of the crucial prerequisites to start any business.
Finance
● Involves strategically planning, organizing, directing, and controlling an organization’s
Financial Management
governed by the principle that it must protect the financial interest of the investors and shareholders and ensure business growth.
Financial Management Scope
Financial Managers need to evaluate factors such as the cost of current and fixed assets, cost of marketing, need for butter capital, long-term operations, and human resources cost, etc.
Assessing Capital Needs
Is the framework that determines decisions such as debt-equity ratio in the short as well long-term.
Determination of Capital Structure
There is a need to frame efficient financial policies that govern cash control, the lending and borrowing processes, and so on.
Creation of Effective Financial Policies
Great Financial managers are able to navigate through different scenarios by making optimum use of the available financial resources.
Resource Optimization
For any business to grow confidently and have a good market reputation, an adequate amount of cash and liquidity is critical.
Fundraising
Smart fund allocation is as critical to a business’ financial health as fund-raising itself.
Fund Allocation
It determines its financial health and future growth.
Profit Planning
Good financial managers have to be well-versed with the capital market dynamics, and the risks associated.
Understanding Capital Markets
Determines a company’s mix of debt and equity financing.
Capital Structure
Involves evaluating long-term investments.
Capital Budgeting
Mitigating financial health risks by balancing current assets with liabilities.
Working Capital Management
Involves creating disbursement policies and strategies.
Dividend Management
● Guides companies through strategic processes, ensuring stability and growth.
Financial Managent Cycle
Includes analyzing past data to set financial goals.
Planning and Budgeting
Assigns value to capital resources, aligning funds with company goals.
Resource Allocation
Tracking transactions, and reducing fraud risks.
Operations and Monitoring
Focuses on analyzing financial performance by comparing it to previous periods.
Evaluation and Reporting
are in charge of financial reporting and the oversight of the accounting activities necessary to develop those reports.
Controllers
may be responsible for structuring loan and debt obligation and determining when and from whom to borrow funds.
Treasurer
is an executive level position and oversees the activities of the controller and treasurer.
Vice President of Finance (VP-F)
is in a “big picture” position.
Chief Financial Officers (CFO)
