TOPIC 3: FINANCE
Role of Financial Management
- strategic role of financial management
- objectives of financial management
- short-term and long-term
- interdependence with other key business functions
Strategic role
Financial Management – the planning and monitoring of an organisation’s financial resources to enable the organisation to achieve its financial goals.
Financial Resources – the resources of a business that have a monetary or money value.
Financial Resources – the resources of a business that have a monetary or money value.
Objectives of financial management
TASK:
- Explain the objectives of financial management.
- Explain how objectives of financial management may conflict with each other.
Interdependence
TASK: Describe how the other key business functions (KBFs) depend on financial management. Hint: Finance is about money, so each KBF needs to negotiate with Finance for their spending budget, and, of course, Marketing needs to interact with Finance regarding Price (Revenue = Quantity x Price).