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Financial Management Assignment - Solution

   

Added on  2020-10-22

6 Pages1492 Words125 Views
FINANCIALMANAGEMENT

TABLE OF CONTENTSINTRODUCTION...........................................................................................................................1TASKS.............................................................................................................................................11. Presenting management's role for accomplishing objective of stakeholder with differentimplication of agency theory.......................................................................................................12. Representing role of monetary, exchange rate, fiscal and interest rate policies withattainment of different macroeconomic policy targets................................................................3CONCLUSION................................................................................................................................3REFERENCES................................................................................................................................5

INTRODUCTIONFinancial management is replicated as an important activity with reference to anyorganization. In simple words, it is elaborated as a process of planning, controlling, monitoringand organizing various financial resources for the purpose of accomplishing organizationalobjectives and goals. The present report will discuss about different functions of management formeeting stakeholder’s objectives with uses and disadvantages of agency theory. In similarcontext, it will specify fundamental objectives of business entity. This report will also reflectfunctions of interest rate, exchange rate, fiscal and monetary policies for attaining differenttargets related to macroeconomic policies.TASKS1. Presenting management's role for accomplishing objective of stakeholder with differentimplication of agency theoryThe organization has numerous fundamental financial objectives which are stated as below:The main objective is to maximise profit via century of economic and traditionaleconomic theory. The small organization has small where owner managed and competedwith companies which has same nature (Shi, Connelly & Hoskisson, 2017).Wealth maximisation is fundamental objective of organization as it raises net presentvalue with context of financial action. It has presence of positive net present value forgenerating desirable wealth.In the similar aspect, market value of particular equity shares of organization should beraised as indexes of performance of business entity has been served. Agency theory is known as very useful framework for designing proper control andgovernance in business entity. It is directly offering attractive introduction on basis of topic viaappropriate evaluation of its weakness along with strength. This theory has presence of variouscase study for purpose of demonstrating its application in numerous industries. Further, agencytheory could be explained as management and economic theory for attempting and explainingself-interests and relationships between agents and delegation of control. It has elaborated bestfor relationship management where principal determines work and different agents takesdecision and perform with context of principal.Effect of agency theory on various financial decisions1

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