Role of financial management in a firm

Assignment Help Finance Basics
Reference no: EM13746482

1. 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:

  • Explain the various aspects of finance that management must understand. 
  • Describe why a manager needs to understand the characteristics and importance of financial markets including their liquidity, competitiveness, and efficiency.
  • Interpret the function of the Financial Balance Sheet in assisting in management's decision making process.
  • 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 at least 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.

2. Short Term View or Long Term View?

After reading the first two chapters of your textbook, evaluate the following statement:

Managers should not focus on the current stock value because doing so will lead to overemphasis on short-term profits at the expense of long-term profits.

In your post, explain what is meant by this statement.  Describe how management might decide whether to focus on short term or long term goals and how that decision impacts the organization.  Next, using the financial balance sheet as displayed in the text, compute an example of how focusing on short term profits can be detrimental to long term profits. Share your opinion regarding whether you feel it's a better option to focus on short term or long term goals.  Use evidence from the text or external sources to support your position. Your post should be 200-250 words in length.

Reference no: EM13746482

Questions Cloud

Calculate the amount of sales revenue : Last year, Flynn Company reported a net income of $70,000 when sales totaled $520,000 and the contribution margin ratio was 40%. If fixed costs increase by $10,000 for the coming year, calculate the amount of sales revenue Flynn Company would need to..
The delegation model or process : Delegation Example in a Health Care Setting Presentation Behavioral Medicine (Psychiatric Unit) , The delegation model or process
Future performance of the firm : Valuation of a firm's financial assets is said to be based on what is expected in the future, in terms of the future performance of the firm, the industry, and the economy.
Explanation from financial reporting and ethical perspective : You are a recently-hired accountant at Greenwood Company, a small corporation that does a seasonal business of selling snow removal equipment, with most of its sales to retailers occurring in the last two quarters of the calendar year.
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:
Rationale for eliminating gift taxes : From your reading and research this week, you will learn that estate taxes are complex and require a lot of skill to navigate for complex estates. Take a position on the fairness of the current estate tax laws and recommend changes you would propose ..
Consolidated cost of goods sold : Several years ago, ABC bought DEF Company. DEF was a supplier of merchandise for ABC and one of the primary reasons for this acquisition was so that ABC could save money on these purchases. In the current year, ABC reports cost of goods sold of $1,00..
Plant and equipment exceeded its carrying amount : On June 30, year 1, ABC Co. purchased for cash at $20 per share all 300,000 shares of the outstanding common stock of DEF Co. At June 30, year 1, ABC’s balance sheet showed a carrying amount of net assets of $2,000,000. At that date, the fair value o..
Impact on net consolidated income created by this transfer : ABC owns 100% of the outstanding shares of DEF Co. On January 1, Year One, ABC transfers a building to DEF for its fair value of $500,000. At that date, ABC was reporting this building at a net book value of $400,000 with no residual value and a rema..

Reviews

Write a Review

Finance Basics Questions & Answers

  Analyzing revenue recognition methods

Describe different revenue recognition methods under GAAP and IFRS. Define ADR firms.

  Determine cost of retained earnings

Dudek Manufacturing's common stock is currently selling for 45$ per share. Their most recent divided (yearly) was $2.50, & is expected to grow at 5 percent per year indefinitely.

  Take into consideration price, tax, registration

First, you need to decide on your budget, which is the maximum you can spend on a car, and that maximum number should take into consideration price, tax, registration, and fixing if needed.

  What would the value of the fulton bonds

What would the value of the Fulton bonds at an 8% required interest rate of return if the interest were paid and compounded semiannually?

  The isberg company just paid a dividend of 075 per share

the isberg company just paid a dividend of 0.75 per share and that dividend is expected to grow at a constant rate of

  Estimated relationship between inventories and sales

On the basis of recent history, the estimated relationship between inventories and sales (in millions of dollars) is shown below.

  How does the occupational safety and health administration

How does the Occupational Safety and Health Administration (OSHA) encourage organizations to adopt ergonomic job design?

  Computing amount of the loan repayments

XYZ Ltd paid= $200,000 for feasibility study on project about a year ago. You are needed to compute: The amount of the loan repayments. The accounting rate of return (gross and net).

  Assume that during the period following the transaction the

describe a situation in which a financial manager might use an interestrate future. assume that during the period

  According to the fasb conceptual framework the objective of

according to the fasb conceptual framework the objective of financial reporting for business enterprises is based on

  A firm has common stock of 84 paid-in surplus of 200 total

a firm has common stock of 84 paid-in surplus of 200 total liabilities of 380 current assets of 330 and fixed assets of

  Are you considered a default risk

Are you considered a default risk? How would a lender evaluate you based on "the five C's" of character capital, collateral, and conditions? How could you plan to make yourself more attractive to a lender in the future?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd