Name: Vanessa M.

Baron Course and Year: BSIS-1

FINANCIAL ENVIRONMENT (INSIGHTS)

A financial environment is a part of an economy with the major players namely the firms,
investors, and markets. These major players surround the company that affects the working of
the company as a whole. A firm is an organization which provides products and services which
people pay for. An investor is someone who provides (or invests) money or resources for an
enterprise with the expectation of financial returns. Market describes the group of individuals
that make up the pool of actual and potential customers for their goods and services.
Munyi,A.(). The Definition of Financial Environment. Retrieved from
https://www.academia.edu/7615741/Definition_of_financial _environment

For me, money is the king of financial environment. It keeps the interaction between the
major factors. It is the medium used by the market to purchase goods and services. As we all
know, the market (us) is what keeps the financial environment growing. Taxes are for the
government and the market is for the financial environment. In our businesses today, the
financial environment seems to be very challenging and somehow complicated. It is challenging
because many competitors were born and the demand of the market for better versions of
everything is highly increasing. It is complicated because the government is always there to
impose regulations that will affect the business. Well, businesses don’t have any choice but to
adjust.

It’s a good thing that financial managers were born to deal with the best financial
decisions that will maximize the firm’s value. They made it convenient for the firms and
organizations to easily adapt to changes because they are there to guide. Financial managers
should always be aware to the latest happenings in the economy, global market and many other
things. It is one way of keeping the health of the organization. In short, the factors involved in
the financial environment have this symbiotic relationship called mutualism.