Short Answer Submission Form.

Short Answer Submission Form
Your Name: First and last
Your E-Mail Address: Your e-mail here
Prompt 1
Response
Role of Financial Management in Promoting a Company’s Success.
Financial management is a discipline that starts from a personal level and then exhibited in the corporate world. Financial
management, according to Kadam, (2012), the main goals and contributions of financial management is proper financial planning,
directing and controlling in an organization. It involves managing financial activities like purchasing and also utilizing the funds of the
company. The Chief Finance Officer as a Financial Manager is tasked with making a decision that drives the company forward. It is
therefore clear that a financial manager has different roles. He/she is responsible for calculating and estimating capital requirements
for the company (Chand, 2019). Moreover, he/she engages in discussing with other management teams to make budget estimates for
the company. He determines the cost and also the projected profits and then concludes on the amount of capital that is required. These
discussions are done in consideration with the company policies and the main goal of profitability. After estimating the capital
requirements, the Finance Manager is required to advise the Board of Directors on the choice of source of funds.
©2015 Walden University 1

In addition to the above, the finance manager estimates capital requirements and decides on the source of money. Moreover, the
finance manager is tasked with deciding on the structure of the capital composition. The structure may include long term or short term
debt equity analysis; however, this depends on the equity a company has and further funds that can be got from the outside investors.
In investment, the choice of where to invest money is very crucial and a significant factor in determining the success of the business. It
is therefore the role of a financial manager to make a decision on the best investors for the company(Chand, 2019). As elucidated in
the above paragraph, the finance manager is tasked with the declaration of the profit and loss statement for public consumption and
taxation.
The role of financial management in serving the interests of shareholders.
The primary objective of all shareholders is profitability, sustainability and expansion. Therefore the financial manager ensures that
shareholders are kept aware of the financial stand of the organization in terms of performance(Chand, 2019). The above guarantees
productivity and supply hence, profit for the shareholders. The finance officer has to ensure that the company is self-sustaining and
earns profits to the shareholders by utilizing the funds available to him. To ensure the safety of the investment, he has to make good
decisions while choosing where to invest the money(Chand, 2019). This helps him maintain a positive balance sheet between
liabilities and asset.
Moreover, the financial manager plays a vital role in taking into consideration the different interests as presented by the shareholders.
He/she makes a decisions to declare dividends or retain the profits for business diversification and expansion. Both options would
©2015 Walden University 2

favor the shareholders because the company gains in terms of assets, and the shares grow(Chand, 2019). The Chief Finance Officer is
responsible for controlling and administering cash. Cash control is one of the most complex parts of management because when cash
is 'tightened,' some employees who have had chances to embezzle develop hatred for the management and work against. However, it
is a crucial part in determining the success of the business(Chand, 2019). Administering cash involves ready cash for paying salaries
and wages, maintenance of stock, purchasing more stock, paying company bills. For shareholders to trust management, there should
be good financial controls. This reveals itself from the performance of the company(Chand, 2019). It will show the shareholders that
the assets are being put to good use, they are secure, and the managers are working in the best interest of the shareholders. A finance
manager is also tasked with utilizing the available funds. He should use the money to invest in the most profit but secure ventures.
Prompt 2
Analysis of a Publicly Traded Company
Response
Analyze annual reports and other credible sources to outline a publicly traded company’s ethics practices from a financial
point of view
Coca-cola Company is a multinational company that is found in America dealing in the manufacturing of nonalcoholic beverages. It is
well known for its ordinary brand coca cola which it invented in 1886. Coca Cola Company is committed to business ethics is
paramount, and it is the practice everywhere it operates. The company has a reliable and comprehensive code of conduct, which is the
©2015 Walden University 3