Financial Management

Finance

Economics

GDP

Disposable Income

Inflation

Interest Rate

Taxes

Accounting

Income
Statements

Balance
Sheets

Cash Flow

Functions and Activities

1. Raising funds for the firm at minimal cost and acceptable risk

Forms of organization

-Sole Proprietorship
-Partnership
-Corporation

Financial Markets

Global network of corporations, financial institutions, governments
and individuals that either need money or have money to lend or invest

Money Markets

Deal in short-term
securities(<1 year)

-Treasury Bills
-Commercial Paper

Capital Markets

Long-Term

-Common Stock
-Corporate Bonds

-Working Capital
-Capital Budgeting
-Financial Decisions

Goals

Maximize the long-term wealth of the
company’s shareholders by increasing the market value of their shares

2.Investing those funds in company assets to earn an attractive return given acceptable risks