1.Introduction to FM

Question 1

What is Corporate Governance?

Answer 1

Investment
• Choose best projects
• Capital Budgeting What long-term investments or projects should the business take on?
Financing
• Choose the source of financing for investment
• Capital Structure how we pay for our assets
Liquidity how convert assets to cash quickly
• Ensure you have enough cash and inventory
• Short-Term Financial Planning

Question 2

Working capital management

Answer 2

How do we manage the day-to-day finances of the firm?
• Cash management
• Management of short-term receivables and payables

Question 3

Goal of Financial Management

Answer 3

• is to maximize shareholders value/ wealth by paying dividends for instance
there are different stakeholders. For employees that is to increase salary, for government that is increasing taxes, for people that is reducing price