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FINMA Lesson 1 Introduction to Financial Management

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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
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