FINANCIAL MANAGEMENT

It can be defined as the science and art of managing money.

In a business context, it is involves the same types of decisions: how firms raise money from investors, how firms invest money in an attempt to earn a profit, and how they decide whether to reinvest profits in the business or distribute them back to investors.

It is concerned with the duties of the financial manager working in a business.

Career opportunities in finance that is the area of finance concerned with the design and delivery of advice and financial products to individuals, businesses, and governments. It involves a variety of interesting career opportunities within the areas.

Administer the financial affairs of all types of businesses—private and public, large and small, profit seeking and not for profit.

Legal forms of business organization that consist of two or more owners doing business together for profit. Most are established by a written contract known as articles.

Legal forms of business organization that is a business owned by one person who operates it for his or her own profit. It raises capital from personal resources or by borrowing, and he or she is responsible for all business decisions.

Legal forms of business organization that has the legal powers of an individual in that it can sue and be sued, make and be party to contracts, and acquire property in its own name.

Who is the responsible for managing day-to-day operations and carrying out the policies established by the board of directors and it reports periodically to the firm’s directors.

Who is typically responsible for approving strategic goals and plans, setting general policy, guiding corporate affairs, and approving major expenditures. Consists of “inside” directors, such as key corporate executives, and “outside” or “independent” directors, such as executives from other companies, major shareholders, and national or community leaders.

It is a legal provision that limits stockholders’ liability for a corporation’s debt to the amount they initially invested in the firm by purchasing stock.

It is the condition of a sole proprietorship (or general partnership), giving creditors the right to make claims against the owner’s personal assets to recover debts owed by the business.

It is the purest and most basic form of corporate ownership. Stockholders expect to earn a return by receiving dividends

Other organizational forms provide owners with limited liability. The most popular are limited partnership (LP), S corporation (S corp), limited liability company (LLC), and limited liability partnership (LLP). Each represents a specialized form or blending of the characteristics of the organizational forms described previously. What they have in common is that their owners enjoy limited liability, and they typically have fewer than 100 owners.

Sometimes referred to as residual claimants, meaning they are paid last) - owners of a corporation whose ownership, or equity, takes the form of either common stock or preferred stock.  

It represents the amount earned during the period on behalf of each outstanding share of common stock, calculated by dividing the period’s total earnings available for the firm’s common stockholders by the number of shares of common stock outstanding.