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Accounting Management Overview | Assignment

   

Added on  2021-02-16

8 Pages2231 Words32 Views
ACCOUNTING

Table of Contents1. INTRODUCTION ......................................................................................................................32. CORPORATE FINANCIAL MANAGEMENT ........................................................................32.1 Cash flow and shareholder value .....................................................................................32.2 Providing financial information to stakeholders .............................................................33. ROLE OF BUSINESS PLANNING AND STRATEGY............................................................43.1 Key elements of financial strategy ..................................................................................43.2 Benefits of financial strategy............................................................................................43.3 Characteristics of financial strategies ..............................................................................4Examples of business strategies ............................................................................................54. PRIMARY TOOLS AND TECHNIQUES AIDING IN DECISION MAKING .......................64.1 Purpose of budgeting .......................................................................................................64.2 Role of budgeting ............................................................................................................65. CONCLUSION ...........................................................................................................................76. REFERENCES............................................................................................................................8

1. INTRODUCTION Corporate financial management aids in making the decision regarding the businessoperations. It helps in developing the strategies which assist in improving the performance of theorganisation to achieve their goals and objectives. It helps in maximising the shareholder valueby providing them with higher return for the amount invested by them in organisation. In thisassignment, It will provide information regarding the corporate financial management and how itaids in providing the financial information to the stakeholders. Moreover, It will include the keyelements of the financial strategies for the business planning and for making various decision forthe organisation. 2. CORPORATE FINANCIAL MANAGEMENT 2.1 Cash flow and shareholder value Corporate financial management aids in creating value for the shareholder by effectivelyutilising the resources of the organisation and investing the funds in right manner to generatehigher revenue in order to create value for the shareholders. The cash flow consist of operating,investing and financing activity which aids in identifying the cash inflow and outflow for theperiod by the organisation (Khosropour, 2017). Corporate financial management deals with longterm financial decision made by the organisation. With the help of weighted average cost ofcapital, the firm is able to calculate the enterprise value. It helps in identifying the value for theshareholders because with the increase in the firm value the value for the shareholders alsoincreases. 2.2 Providing financial information to stakeholders It is important to provide the financial information to the shareholders because it willassist the stakeholders in making the various decision. The stakeholder of the organisationconsist of managers, employees, customers, government, suppliers , creditors etc. which uses thefinancial information of the firm in order to make various decision (Marsigalia, Giovannini andPalumbo, 2019). With the help of financial information, the shareholder of the company is ableto make the investment decision on the basis of comparing the companies which provide higherreturns. with the help of providing financial information to stakeholder the business is able toidentify the sources of funds which assist in corporate financial management of the organisationas firm is able to identify the different stakeholders which can invest in the organisation.

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