FIN420 - Chapter 1 Introduction To Financial Management

• To facilitate the exchange of goods and services

To provide a platform for companies to raise capital

To manage a company’s payroll

To set tax policies for businesses

Buying shares of stock from another investor

Selling bonds to investors

A company issuing new shares to the public

Trading currency in the forex market

Primary and Secondary markets

Private and Public markets

• Local and Global markets

Real and Virtual markets

It ensures that the firm complies with government regulations.

• It helps companies raise capital and manage risks.

It manages the company’s human resources.

It handles the firm’s marketing strategies.

To maximize market share

To increase employee satisfaction

To maximize shareholder wealth

To expand globally

• Minimizing the risk of the company

Ensuring stable long-term profits and returns for shareholders

Reducing the company’s market share

Increasing employee bonuses

It focuses only on short-term gains.

It guarantees long-term success.

It reduces the company’s overall risk.

It increases market competition.

• The firm should prioritize maximizing profits for shareholders above all.

The firm should consider the interests of all stakeholders, not just shareholder

• The firm should focus solely on the market competition.

The firm should prioritize employee satisfaction over financial gains.

Designing the company’s product line

Setting the firm’s strategic direction

Managing the company’s finances, including capital budgeting and financing decisions

Determining the company’s advertising strategy

The process of determining the value of financial markets

• The process of planning and managing a company’s short-term finances

The process of evaluating and selecting long-term investment projects

The process of managing a company’s human resource needs