We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy

Management Finance And Control Essay Sample

essay
  • Pages: 3
  • Word count: 621
  • Rewriting Possibility: 99% (excellent)
  • Category: control finance

Get Full Essay

Get access to this section to get all help you need with your essay and educational issues.

Get Access

Introduction of TOPIC

The primary objective of financial management is to maximize shareholder wealth. Capital generation is critical in this respect because financial managers maximize the amount of shareholder equity by generating capital. However generating capital is a question of asset planning and management. Financial managers have to manage their assets in such a way as to maximize the return to shareholders. When it comes to managing assets, financial managers have two tools at their disposal: capital budgeting and working capital management. Capital budgeting allocates resources in long term assets while working capital management ensures efficient and effective resource allocation to current assets.

Maximization of shareholder wealth is achieved through maximization of profits. Profit maximization entails developing a competitive edge for expanding market share. The management of a company wants to implement many projects from time to time in order to develop a competitive edge. However organizational resources are finite. As a result it is the responsibility of financial managers to apply capital budgeting techniques so that only those projects which are projected to have the highest returns receive funding. The NPV method and the IRR method are frequently used in this respect. Working capital man

agement is also very critical as it is related to improving the cash position of the company.

Sorry, but full essay samples are available only for registered users

Choose a Membership Plan
style="text-align: justify;">Financial managers have to measure the performance of the company from time to time in how efficiently and effectively financial resources are being allocated. To do so, budgetary controls are put in place so that when there are variances between projections and the actual, problem areas can be immediately located. Preparation of master budgets requires managerial decision making. In financial accounting there is no maneuverability because the management has to follow the generally accepted accounting principles rigidly. In managerial accounting however, which is for internal reporting, the need is to develop costing methods which accurately reflect the level of resource being consumed by each activity. As a result, personnel who have a deep understanding of the process chains involved have to analyze how each organizational activity should be given a cost figure that neither underestimates nor overestimates profits. Therefore when it comes to managing and controlling company finances, managers have to not only manage assets for maximum returns to shareholders but also implement budgetary controls and conduct risk analysis to ensure sound investment decisions.

References

Brigham, Eugene F., and Michael C. Ehrhardt. (2007). Financial Management: Theory &

Practice. South western college pub.

Higgins, Robert C. (2007). Analysis of Financial Management. McGraw-Hill/Irwin.

Shapiro, Alan C. (2007). Multinational Financial Management. McGraw-Hill/Irwin.

Lessard, Donald R. International Financial Management. McGraw Hill/Irwin. 2005.

Bekeart, Geert and Robert J. Hodrick. International Financial Management. Wiley. 2005.

Opdyke, Jeff D. (2007). The Wall Street Journal. Complete Personal Finance Guidebook.

McGraw-Hill/Irwin.

Ross, Stephen A. et al. (2007). Essentials of Corporate Finance. Wiley.

Brealey, Richard A. et al. (2007). Principles of Corporate Finance. Prentice Hall.

Keown, Art. et al. (2007). Foundations of Finance: The Logic and Practice of Financial

Management. McGraw Hill.

Downes, John and Jordan Elliot Goodman. (2006). Dictionary of Finance and Investment

Terms. Prentice Hall.

We can write a custom essay on

Management Finance And Control Essay Sample ...
According to Your Specific Requirements.

Order an essay

You May Also Find These Documents Helpful

American Mosquito Control Association

The American Mosquito Control Association states that there are over 3,000 known species of mosquitoes in the world. The most common and could be health threatening includes the Culex, Anopheles, and Aedes genera. (Mosquito World, 2017) According to an article by Orkin, mosquito eggs hatch into larvae within 24 to 48 hours. Their growth rate is naturally dependent on other factors such as temperature, moisture, and other environmental conditions. On average, within seven to ten days, larvae enter the pupal stage. It will later on emerge as an adult mosquito. Male mosquitoes normally feed on plant extracts unlike female mosquitoes. Females extract blood of hosts in order to develop and nourish eggs. Antennae receptors provide the mosquitoes aid in tracing the moist trail filled scent humans leave behind upon movement. Carbon dioxide and other substances including lactic acid attract them (Matthew Chmielewski, 2007) Based on an article by PubMed: Dengue...

Amendment of the United States Constitution

The Second Amendment of the United States Constitution states the rights to give citizens of America the right to bear arms. This amendment was adopted with the rest of the other amendments, in the Bill of Rights. With that being said, there are many people out there that takes that amendment literally, and feel as if they should be able to own and have any kind of gun that they wish. However, there are many types of guns that are specifically designed for our military, for some state local law enforcements, which are illegal for the average individual to own, for obvious reasons. There are certain circumstances and tests that you have to meet in order to purchasing a gun or owning one. There are safety laws that are put into place for many reasons, such as them ending up in the hands of a felon, children, or even mentally...

Reasons Why Buyers Now Control the Sale

The focused powers that face the J Crew are solid however they are not equipped for curbing the endeavors of the organization. In light of the delineation of the watchmen five model, the J Crew business would be liable to the member\'s forces. The provisions control is the advancement of the costs to go higher because of the impact of the providers. In connection to the provider control, the providers to the business have the capability of driving up the business costs. In view of the impact that the providers have, they choose to drive up the costs of the materials that the business utilizes as a part of its operations. With regards to the providers being few, the J Crew business is vulnerable to the effect that the providers would convey to its operations (Thompson et al., 2013). The J Crew manages diverse providers who help its operations by...

Popular Essays

logo

Emma Taylor

online

Hi there!
Would you like to get such a paper?
How about getting a customized one?