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Financial Management Assignment Solved

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Added on  2020-10-22

Financial Management Assignment Solved

   Added on 2020-10-22

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FINANCIALMANAGEMENT
Financial Management Assignment Solved_1
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1Discussing role of management to meet stake-holder's objectives with application of agencytheory ..........................................................................................................................................1Impact of agency theory on different financial decisions............................................................1TASK 2............................................................................................................................................2Discussing role of fiscal, monetary, interest rate and exchange rate policies withaccomplishment of macroeconomic policy targets......................................................................2CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................4
Financial Management Assignment Solved_2
INTRODUCTIONFinancial management is referred as vital activity in business entity. It is considered asprocess of organizing, planning, monitoring and controlling financial resources with aspect ofattaining organizational objectives and goals. The present report will discuss about role ofmanagement to meet objectives of stakeholders along with application and limitation of agencytheory. Further, this report will articulate about role of fiscal, interest rate, monetary andexchange rate policies with accomplishment of macroeconomic policy targets.TASK 1Discussing role of management to meet stake-holder's objectives with application of agencytheory The fundamental financial objectives of business entity are :Maximize profit: This objective has been emerged through century of economic theoryand in traditional economic theory and typical business entity was small where owner competedand managed with numerous similar organization.Maximize wealth: It is replicated as increment in net present value as financial actionwith presence of positive net present value with creation of wealth and desirable.Maximise value: The market value of equity shares of business entity must bemaximised as it must serve as indices of organization's performance.Other objectives: In the similar aspect, sales, growth and return on investment isincreased (O'Connor & Shaikh, 2018, July).Agency theory is replicated as useful framework for purpose of designing appropriategovernance and control is particular organizations. This concept directly offers effectiveintroduction related to topic through proper evaluation of its strengths and weakness. It hasapplication of case study for demonstrating that how theory is applied in various industries.Agency theory could be defined economic and management theory which attempts forexplaining self interests and relationships among delegation of control and principals/agents. Itelaborates that how best for managing relationships in which a principal identify work and otheragent takes decision or perform on basis of principal (Banks & et.al., 2018).Impact of agency theory on different financial decisionsAgency theory helps in accomplishing financial objectives where shareholders act viamanagement and has presence of incentive for inducing business entity to take innovative1
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