Description

The opening section introduces financial management and explains how managers make financial decisions that affect the value and success of a business.

1. What is financial management?

Financial management is concerned with how a business obtains, invests, and manages money.

Financial managers make decisions about:

• What investments the company should make
• How those investments should be financed
• How much cash the company should keep
• How profits should be distributed
• How financial risks should be managed