Assignment
Part 1: The Role of Financial Management in a Firm
Examine the role of management as it relates to finance in a corporation. In your post, discuss the role of management by addressing the following prompts:
• Explain the various aspects of finance that management must understand.
• Describe why a manager needs to understand the characteristics and importance of financial markets including their liquidity, competitiveness, and efficiency.
• Interpret the function of the Financial Balance Sheet in assisting in management's decision-making process.
• Discuss what could happen if management does not fulfill responsibilities related to finance. Share a real-world example from your own professional experience or from an external source.
Part 2: Short Term View or Long Term View?
After reading the first two chapters of your textbook, evaluate the following statement:
Managers should not focus on the current stock value because doing so will lead to overemphasis on short-term profits at the expense of long-term profits.
In your post, explain what is meant by this statement. Describe how management might decide whether to focus on short term or long-term goals and how that decision impacts the organization. Next, using the financial balance sheet as displayed in the text, compute an example of how focusing on short term profits can be detrimental to long term profits. Share your opinion regarding whether you feel it's a better option to focus on short term or long-term goals. Use evidence from the text or external sources to support your position.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.
Required Resources
Text
Byrd, J., Hickman, K., & McPherson, M. (2013). Managerial finance [Electronic version].
• Chapter 1: A Financial Model of the Corporation
• Chapter 2: Financial Claims and Markets
Multimedia
Films Media Group. (Producer). (2011). Microeconomics: Understanding the market system [Video File]. Retrieved from Films on Demand.
Recommended Resources
Articles
Ang, J.S. (1993). On Financial Ethics. Financial Management, Autumn, (1993), 32 - 59. Retrieved from ProQuest Database.
Mergent. (n.d.). Mergent Online Quick Tips . Mergent Online. Retrieved from Online Ashford Library.