MODULE 2 - Functions of Financial Management Flashcards
To maximize the owner’s or shareholder’s wealth, the finance manager makes decisions involving..
(1) Planning
(2) Acquiring funds
(3) Utilizing funds
Responsibility of Financial management
(1) to allocate funds
(2) to obtain the best mix of financing alternatives
(3) to develop an appropriate dividend policy
Role of Finance manager
(1) oversee the financial health of an organization
(2) Ensure its continued financial viability
(3) supervise important functions
(4) prepare financial statements
(5) monitor financial details
(6) supervise employees who do financial reporting and budgeting
(7) review finanial reports
(8) seek ways to reduce costs
Coordinates the activities of the treasurer and the controller.
Vice President of Finance/ Chief Financial Officer
Handles cost and financial accounting
Controller’s office
Responsible for managing the firm’s cash and credit, its financial planning and capital expenditures.
Treasurer’s office
Relationship with other Key Functional Managers in the Organization
(1) Finance managers and Personnel Managers
(2) Finance managers and Production managers
(3) Finance managers and Marketing managers
(4) Finance managers and Material managers
is the pprocess of monitoring managers and aligning their incentives with shareholder’s goals.
Corporate Governance
Not active in participation in the operation of the business.
Shareholder
Handles day-to-day operations, and they know that their work is mostly unknown to investors.
Managers
Governing body of the company. Representaives of stockholder’s interest.
Board of Directors
Hired by the Board. Evaluates the management. Can also design compensation contracts to tie management’s salariesto firm performance.
CEO
SEC means…
Securities and Exchange Commission
BIR means…
Bureau of Internal Revenue
BSP means…
Bangko Sentral ng Pilipinas
