INTRODUCTION TO FINANCIAL MANAGEMENT Jobert P. Chong, MBA W H AT I S F I N A N C I A L M A N A G E M E N T ? • Financial Management (or Finance) is the art and science of managing money. THREE WELL-KNOWN LEGAL FORMS OF BUSINESS • Sole Proprietorship • Partnership • Corporation W H AT I S T H E P R I M A RY G O A L O F T H E FIRM? •Maximization of Owners' Wealth H O W D O C O M PA N I E S M A X I M I Z E T H E W E A LT H O F T H E I R O W N E R S ? •Company Growth H O W C A N A C O M PA N Y G R O W ? •When a company reinvests its profits back to the company. IN BUSINESS, WHERE DOES C O R P O R AT E S O C I A L R E S P O N S I B I L I T Y FA L L I N TO P L A C E ? • Only after the company ensures its own growth requirements should it proceed with humanitarian and other noble activities which the organization believes in. REFERENCE: • Principles of Managerial Finance (13th Edition) by Lawrence J. Gitman and Chad J. Zutter