Financial Management Entails Planning For The Future of A Person or A Business Enterprise To Ensure A Positive Cash Flow
Financial Management Entails Planning For The Future of A Person or A Business Enterprise To Ensure A Positive Cash Flow
Financial Management Entails Planning For The Future of A Person or A Business Enterprise To Ensure A Positive Cash Flow
to ensure a positive cash flow. It includes the administration and maintenance of financial
assets. Besides, financial management covers the process of identifying and managing risks.
The primary concern of financial management is the assessment rather than the techniques
of financial quantification. A financial manager looks at the available data to judge the
performance of enterprises. Managerial finance is an interdisciplinary approach that borrows
from both managerial accounting and corporate finance.
Some experts refer to financial management as the science of money management. The
primary usage of this term is in the world of financing business activities. However, financial
management is important at all levels of human existence because every entity needs to
look after its finances.
Evo
• Early 1900 : instrument, institution, and procedures of capital market and money
market
• Around 1920 : focus on security and banking sector, and investment in common
stock
• Around 1930 : focus on liquidity, debt, regulation, bankruptcy, reorganization
• Early 1940 and 1950 : internal analysis, planning and controlling cash flow
• End of 1950 : capital budgeting, valuation, and dividend policy
• Around 1960 : development of portfolio theory
• Around 1970 : CAPM model and APT model that can be used to value the financial
assets
• Around 1980 : focus on uncertainty, asymmetric information, financial signaling
• Around 1990 : multinational financial management, behavioral finance, enterprise
risk management, good corporate governance
Definition
One who is skilled in the practice of accounting or who is in charge of public or private
company or for an individual, in accordance with government and regulatory authority rules.
"Economics is the study of how individuals and groups make decisions with limited
resources as to best satisfy their wants, needs, and desires".
Most simply put, economics is the study of making choices.
We need economics because we as individuals and as a society experience
scarcity (of raw materials, of goods and services, of time, and so on) in
relationship to our ever-growing needs and wants. Economics examines how
we make choices: a new car or college tuition? more hospitals or more
highways? more free time or more income from work? It gives us a way of
understanding how to make best use of natural resources, machinery, and
people's work efforts.
practices, or composition of the population, and so on. Almost all issues of public
and private policy involve economics and so do your own individual choices.