Intro to FinMan

• Financial management - is an area of financial decision-making, harmonizing individual motives and enterprise goals. It is mainly concerned with the effective management of business funds.
• Functions of finance:

  1. Analysis
  2. Decision-making
• Areas of finance:

  1. Corporate finance
  2. Personal Finance
  3. Investments and portfolio management
  4. Financial market and Institutions
  5. Public Finance
• True or False

  The ultimate objective of financial decision is the achievement of maximization of shareholders wealth or maximizing the market value of the shares.

  True.
• 3 Major Decisions under the Finance Function:

  1. Investment
  2. Financing
  3. Dividend
• S1: Financial management is forward-looking while financial is historic

  S2: Both Financial management and management accounting are mainly concerned with raising funds

  Statement 2 is incorrect