Financial Management

Q1) Financial focusing is a part of Bu siness counseling. Its concern is to the companys fiscal activities such as: forecasting, organization, coordination, analysis and control. The corporate of finance activities terminate be divided into production and counseling, financing, investment and clothe on distribution. Financial perplexity is to apply scientific court to close making in financial activities. Its goal is to maximise receipts and sh arholder wealth, which makes financial management in a karyon of business management, so to establish a goal of financial management is genuinely important for a companys long-term development. However, whats problem will we found in the process of achieving the objectives? The following will be analyzed. There is no company willing to do a losing proposition, so we sine qua non to set a criterion to objective assessment that a financial decision is worth to implement or not. And these ar a role of companys financia l managers or agents. Because they know how to get maximize profit. But they are very for the company to maximize profits?

First, in a mickle company, as the separation of management and ownership, the owner of the companys shareholders, but the operators is the management, the management of company does not hold whole shares, they will take all possible action to establish the irreplaceable take of the position, the other things is the management needs to share operating results with others, management whitethorn not work hard for increase shareholder wealth. The others method is employing agents to handle t he financial management. But assuming seve! rally other to get information is asymmetric. Agent of moral issues may arise, due to insufficient information and lack of full taking into custody of the agent characteristics, they may be based on self-interest, campaign to cheat the shareholders, the shareholders may make the wrong decisions. How can we hinder these issues? For management, we can pass a Salary inducing strategy...If you want to get a full essay, hostel it on our website: BestEssayCheap.com

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