Financial Management Report: Macroeconomic Policy and Business Targets

This report provides a detailed overview of financial management, focusing on the impact of fiscal policy and macroeconomic policies on business targets. It explores key macroeconomic priorities like sustainability, full employment, price stability, and income distribution. The report examines the role of financial managers in making investment, financing, and dividend decisions, emphasizing the importance of maximizing business value. It also discusses the relationship between management and their representatives, and the use of monetary and fiscal policies to achieve financial goals. The report concludes by highlighting the importance of financial planning and its impact on the overall success of a business, covering both long-term and short-term financial decisions.

Financial management

Contents
INTRODUCTION.......................................................................................................................................3
MAIN BODY..............................................................................................................................................3
REFERENCES............................................................................................................................................7

INTRODUCTION
Financial management refers to context of accounting belongings of a company of general
administrative principles. In order to achieve good activity, diligent management of the funds of
a business assures consistency and efficient performance (Shapiro and Hanouna, 2019). If
budgets are not properly met with, an organization will face obstacles that will have a direct
impact on its growth and profitability. The research objectively examines the impact on Fiscal
Manager’s key fiscal policy behavior on the main macro - economic (monetary plus financial)
policies aimed at the achievement of the business targets.
MAIN BODY
Macroeconomic policies typically aim to increase collective revenue by economic expansion,
thus improving participants' financial utility and living standards. There are several main
priorities that tend to increase profits in the long run. Although various national and international
organizations’ priorities differ, most of them pursue the following priorities:
Sustainability: Growth rate that promotes an improvement in living conditions, even systemic
challenges, without need for the atmosphere (Madura, 2020).
Full job/employment: Where individuals who are both eager and willing to function are eligible
to get one, such as compressive, periodic and institutional unemployment (natural
unemployment).
Price stability: Where prices are still reasonably low and inflation / volatility is not swift.
Monetary policy does not contribute necessarily to zero deflation but rather to steady low
medium-sized rate of inflation. It is worth remembering which of these goods and services costs
often collapse due to increases in demand over time, since inflation represents the overall cost
level. Inflation, however, is a good measure of "economic prosperity." Zero inflation in a country
is still unacceptable. (To describe the market norm which results in whole inflationary jobs, the
'internal balance' is used.)

Such balances without arbitrary constraints on financing / payments. In other words, the total
exports are about equal to the lengthy-term import levels.
Equal and fair income and asset allocation: Equal, balanced national wealth sharing, equitable
than a fully free market. Income distribution is, like most economic goals, partially an analytical
or legislative obstacle.
Increased productivity: Each work unit’s greater performance every hour. Since a job is just one
of the many goods and services produced, output may also be identified per unit production
variables per hour (Chandra, 2020).
Thermal Equilibrium: Balance of payments system without arbitrary limitations being imposed.
That is to add, imports are essentially the same as exports.
The Agency's proposal is that the topics of cooperation between management and their
representatives should be explained and addressed. This relationship is typically formed between
owners, managers and managers as agents. An officer uses the construction services of the
principal (Apte and Kapshe, 2020). The leadership has allocated capital but no daily input. The
leadership has allocated resources. The agent makes the decisions, but has little to no liability
such that all losses are the principal liability. Investment consultants and financial advisers are in
part agents and are also accountable for shareholders' funds. The protection of rights of non-land
property may be the responsibility of a contract. If the lesser maintains the estate, they are less
involved than owners in protecting the land.
Higher income, increased performance, reduced profit during hardship times and return on
investments are basic investment targets for businesses (Thom, 2019). The financial planner can
decide where and how easily available funds should be used and how they should be used to
obtain the funding needed. Financial manager's responsibilities include cash activities,
investments, and financing (collecting funds). Maximizing the value of the business is the main
priority of investment analysts whose decisions often have a longer-term effect. On the basis of
funding accounts and other reporting collected by the accounting experts, financial analysts are
making financial choices. The focus of financial managers is fund reserves, cash inflows and
outflows. They plan and monitor the company's financial condition to ensure that funds are
available if necessary. Consequently, the financial officer must determine the short and long term

repercussions of the decisions of the firm to raise its valuation. One technique, but not only one,
is benefit optimization. This approach encourages the short-term achievement of long-term
priorities. What because the increasingly technological and dynamic business environment has
not been investigated and encouraged. In the medium term, sales will be greater regardless of the
value of research and development. But it could obtain a competitive advantage potential in the
longer term because of the lack of the new posts.
Decision making facilitates the use of the money used to fulfill the goals of the business, given
that an organization does not have a certain amount of financial production to continue for any
time. In the final review, however, financial management provides a system of financial
decision-making. Financial decisions can be divided into the following: decisions concerning
long-term finances and decisions concerning short-term finance. In total, there are three big
financial choices:-1. Long-term assessments on expenditure 2. Decision - making on financing 3.
Decisions about dividends
Investment decisions are perceived to be a financial judgment about how businesses are invested
about different properties (Mitchell and Calabrese, 2019). Investment choices can be larger or
smaller-term. A judgment on long-term investment is called capital budgeting, which requires
tremendous and permanent investment, often at considerable expense, in the longer term.
Shortened investments apply to capital expenditure choices that almost daily influence a
business. This involves making decisions on currency, stock and payables for accounts.
A financial judgment relates to investing from multiple long-term funds assets such as bonds,
preferred shares, borrowings, bank loans etc. It also judges the capital structure of the company.
The dividend payout is the business move concerning the distribution of investors' gain to a
company (dividend), and how much should be kept in accordance with speculative purposes.
The main objective of monetary policy is to reduce cyclical cycle fluctuations. Fiscal strategy for
achieving lower inflation has been a common problem for policymakers in recent years. In
financial crises, though, there are legitimate arguments for using fiscal system to create
economic development. Tax techniques include public expenditure adjustment and economic
policy. This reflects a reversal in the country's spending position (Rendon and Snider, 2019). For
example, expansionary fiscal strategy requires tax cuts, higher government investments and

higher deficit spending. The economic part is public spending. Fiscal policy affects controlling
demand and money supply through the use of interest rates in particular. Fiscal policies would
also entail orthodox policies like open trade and fiscal growth. Monetary strategies are normally
applied separately of themselves by the central bank. These measures must be viewed by
measures to avoid any harmful market circumstances. Such a judgment can result in negative
business conditions, such as the liquidity situation, market component, market credit worthiness
etc., without understanding these measures, if managers make choices related to investment,
financing or associated dividends. Management also has to use these policies in implementation
of organizational activities in order to increase the quality of judgments.

REFERENCES
Shapiro, A.C. and Hanouna, P., 2019. Multinational financial management. John Wiley & Sons.
Madura, J., 2020. International financial management. Cengage Learning.
Chandra, P., 2020. Fundamentals of Financial Management|. McGraw-Hill Education.
Apte, P.G. and Kapshe, S., 2020. International Financial Management|. McGraw-Hill
Education.
Mitchell, G.E. and Calabrese, T.D., 2019. Proverbs of nonprofit financial management. The
American Review of Public Administration, 49(6), pp.649-661.
Rendon, R.G. and Snider, K.F., 2019. Management of defense acquisition projects. American
Institute of Aeronautics and Astronautics, Inc..
Thom, M., 2019. Teaching public financial management: an integrated approach to a critical
subject. Teaching Public Administration, 37(1), pp.92-106.