M2 Flashcards
strategic planning of directing, organizing, and controlling financial undertakings
financial management
includes applying management principles to the financial assets of an organization
financial management
includes budgeting money for projects and income of employees
financial management
process of managing finances of governments organization or individuals
fiscal management
to achieve financial stability, sustainability,y and efficiency in government it involves
planning, allocation, and utilization of public funds
responsible for financial health
financial managers
produces financial reports, direct investment activities, and develop strategies and plans for long-term financial goals
financial managers
FUNCTIONS OF FINANCIAL MANAGERS
- financing decision
- capital structure
- investing
- operating
- dividend policies
decision on how to fund long term investment and working capital
financing decision
decision on day to day operations
financing decisions
talks about how much of total assets is financial by debt and financial by equity
capital structure
include short term and long term investment
investing
plan for expected excess in cash using financial planning tools
short term investment
choose which type of investment that involved secure best profits
short term investment
financial planning tools
budgeting and forecasting
prepare a capital budgeting analysis to determine if it will be profitable
long term investment
determine how to finance working capital accounts such as accounts receivable and inventories
operating
determine when the company should declare cash dividends
dividend policies
before a company may able to declare cash dividends, 2 conditions must exist
- the company must have enough retained earnings (accumulated profits)
- the company must have cash
FINANCIAL SYSTEM
- financial instrument
- private placement
- financial market
- financial institution
a real/virtual document representing a legal agreement involving some sort of monetary value
financial instrument
sale of stocks, bonds, and security to a number of investors
private placement
organized forums in which the suppliers and users of various types of funds can make transaction directly
financial market
can give small funds to those who are in needs
financial markets
intermedaries that channel the savings of individuals, businesses and governments into loans or investments
financial institution
example of this is PAGGIBIG, SSS, GSIS
financial institutions
bigger funds can be borrowed
financial institution
set of institutions and practices that facilitate and allow for the exchange of funds between borrowers, lenders, and investors
financial system
what to prepare in long term investment
capital budgeting analysis
2 type of capital structure
financed by debt
financed by equity
