ROLE OF FINANCIAL MANAGEMENT

Jun 21st, 2015
Studypool Tutor
Price: $10 USD

Tutor description

• STRATEGIC ROLE OF FINANCIAL MANAGEMENT : Financial management is defined as the planning and monitoring of a business’s financial resources in order to enable the business to achieve its financial objectives. (Crucial if a business is to achieve its financial goals; predominantly maximising profits)

Word Count: 8710
Showing Page: 1/29
HSC BUSINESS STUDIES FINANCEROLE OF FINANCIAL MANAGEMENTSTRATEGIC ROLE OF FINANCIAL MANAGEMENTFinancial management is defined as the planning and monitoring of a businesss financial resources in order to enable the business to achieve its financial objectives. (Crucial if a business is to achieve its financial goals; predominantly maximising profits)Financial resources - Those resources in a business that have money value ie. Cash, liquid securities, assetsThe strategic role of financial management refers specifically to the strategies that are adopted by the business with regards to managing financial resources to achieve its short and long-term goals.The strategies that a business uses to achieve its goals are incorporated into a strategic plan (encompasses a long term view of the business). This entails the strategies for monitoring the financial resources of a business, such as: monitoring an businesss cash flows paying its debtsIf managed incorrectly a number of problems may exist including:Insufficient cash to pay suppliersInsufficient capital to expandToo many non-productive assetsDelays in paymentPossible business failureOBJECTIVES OF FINANCIAL MANAGEMENTMaximise the businesss Profitability, growth, efficiency, liquidity, solvencyShort term and long termThe objectives of financial management are to maximise: Profitability, growth, efficiency, liquidity, solvencyThe responsibility of financial management is to make decisions abou

Review from student

Studypool Student
" <3 it, thanks for saving me time. "
Ask your homework questions. Receive quality answers!

Type your question here (or upload an image)

1823 tutors are online

Brown University





1271 Tutors

California Institute of Technology




2131 Tutors

Carnegie Mellon University




982 Tutors

Columbia University





1256 Tutors

Dartmouth University





2113 Tutors

Emory University





2279 Tutors

Harvard University





599 Tutors

Massachusetts Institute of Technology



2319 Tutors

New York University





1645 Tutors

Notre Dam University





1911 Tutors

Oklahoma University





2122 Tutors

Pennsylvania State University





932 Tutors

Princeton University





1211 Tutors

Stanford University





983 Tutors

University of California





1282 Tutors

Oxford University





123 Tutors

Yale University





2325 Tutors