Reference no: EM132427873 , Length: word count :- 250

Discussion:  The Role of Financial Management in a Firm

• Examine the role of management as it relates to finance in a corporation. In your post, discuss the role of management by addressing the following prompts:

Question 1:  Explain the various aspects of finance that management must understand.

Question 2: Describe why a manager needs to understand the characteristics and importance of financial markets including their liquidity, competitiveness, and efficiency.

Question 3: Interpret the function of the Financial Balance Sheet in assisting in management's decision making process.

Question 4: Discuss what could happen if management does not fulfill responsibilities related to finance. Share a real world example from your own professional experience or from an external source.

• Your post should be 200-250 words in length.

• Guided Response: Review several of your classmates' postings. Respond to two classmates' by commenting on their example of management not fulfilling its responsibilities. Pose a question to spark discussion regarding what could have been handled differently.

Respond to Peggy Harvey post

• There are many different aspects of finance that management must understand. As mentioned in the text Managerial finance (2013), management is involved in business forecasting, planning processes, analyzing, evaluation, as well as understanding legal/regulatory issues. All of these areas that management are required to understand aid in the success or failure of the company.

• It is important for management to understand the characteristics of financial planning so that they can embody these characteristics and enforce them across the entire company. These attributes aides management in the process of creating security or stability for their company without it coming at a huge cost reduction for the company. Those particular characteristics and abilities promotes for efficiency in the company; and also gives the company a competitive drive.

• If management took a stance to not fulfill these responsibilities to finance the business could suffer a very short life span, and lose their advantage over competitors. A real life example of this is the downfall of Blockbuster video. It does not appear that those in management with the company successfully forecasted the growth of technology and how that could affect their business. There are companies such as Netflix that could have been their running competition. However; I believe their company began to go downhill before they had a chance to gain control of things.