Noreen M.

Meregildo BSBA FM4

Define and Discuss the following terms:

1. Financial management – is an integral part of overall management. It is concerned with the

duties of the financial managers in the business firm. The term financial management has been
defined by Solomon, It is concerned with the efficient use of an important economic resource
namely.
2. Goals of Financial Management – is to maximize shareholder wealth. For public companies this
is the stock price, and for private company this is the market value of the owner’s equity.
3. Function of Financial Management – is stragec planning, organising, directoring, and controlling
of financial undertaking is an organization or an institute. It also include applying management
principle to the financial assets of an organization while also playing an important part in fiscal
management.
4. Responsibility of Financial managers – are responsible for making decision regarding the use of
the firms these includes: forecasting, and planning,, major investment, and financial or financing
decision, coordination and control, dealing with the financial markets.
5. Social responsibility – maximizing shareholder value, business should operate in a way that
benefits society. Socially responsible companies should adopt policies that promote the well
being of society and the environment while listening negative impacts of them.