Financial Management Assignment Solved (Doc)

FINANCIAL
MANAGEMENT

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
1. Evaluating purpose of financial management.........................................................................1
2. Critically evaluating 3 main decision from the view of stake holder's...................................2
3. Clearly explaining how the factors within each decision may affect financial position of
shareholders.................................................................................................................................3
CONCLUSION................................................................................................................................4
REFERENCES................................................................................................................................5

INTRODUCTION
Financial management is the process of conducting planning, organising, directing and
controlling all the financial related business activities for utilising funds of the enterprise
(Lankoski, Smith and Van Wassenhove, 2016). This report will articulate the purpose of
financial management with its three main decision from a view point of stake holder's
perspective. Further, critical evaluation will be developed on factors within each which affect
financial position of the shareholder.
MAIN BODY
1. Evaluating purpose of financial management
Figure 1Purpose of financial management
(source: financial management-meaning, objective and functions, 2019)
Basically, the purpose of financial management is to maximise the value of corporate.
However, it always creates a conflict between owners of business and providers of funds as
creditor. However, it is true that view of stakeholder is considered as important part of firm's
corporate social responsibility which generally implies that a firm will better able to achieve
shareholder goals if it has goal of achieving shareholder wealth maximization. The advance goal
1