An Overview of Financial Management | PAPER III – ACCOUNTING & FINANCIAL MANAGEMENT FOR BANKERS | MODULE C: FINANCIAL MANAGEMENT
Overview of Financial Management - Banking Exam Guide Overview of Financial Management 1. Forms of Business Organisation There are three main types: Sole Proprietorship, Partnership, and Corporation. Each has unique implications on control, liability, taxation, and financial management. 2. Financial Decision Making in a Firm Key decisions include Investment (capital budgeting), Financing (capital structure), and Dividend decisions. These influence the value and sustainability of the firm. 3. Objectives of Financial Management The primary objective is shareholder wealth maximization. Secondary objectives include profit maximization, ensuring liquidity, and maintaining solvency. 4. The Fundamental Principles of Finance Principle of Risk-Return Time Value of Money Cash Flow Principle Profitability and Liquidity Trade-off Diversification of Risk 5. Building Blocks of Modern Finance ...