Financial Management

Q1) Financial focusing is a part of Bu sinss counseling. Its out of bounds is to the companys pecuniary activities such as: forecasting, organization, coordination, analysis and control. The corporate of pay activities nates be divided into production and heed, financing, investment and puzzle on distribution. Financial counselling is to apply scientific move up to close making in financial activities. Its goal is to maximise receipts and sh arholder wealth, which makes financial management in a core of business management, so to establish a goal of financial management is truly 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 are a role of companys financial mana gers or agents. Because they know how to get maximize profit. But they are very for the company to maximize profits?

First, in a messiness company, as the separation of management and ownership, the owner of the companys stockholders, but the operators is the management, the management of company does not hold whole shares, they will inquire all possible action to establish the irreplaceable translate 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 hand le the financial management. But assuming ! separately 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 incentive strategy...If you want to get a full essay, aim it on our website: BestEssayCheap.com

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