FIN2601 - LU1 - The Role and environment of managerial finance

Define Finance

Define the managerial finance function

Explain what is meant by its relationship to economics.

Explain what is meant by its relationship to accounting.

Who performs managerial finance roles?

Provide the three major legal forms of business

What are the typical responsibilities of the board of directors?

What are the responsibilities of the MD or CEO?

What are the three primary goals of financial management?

How can a firm maximise its value/wealth?

What is outstanding shares?

What do companies commonly use to measure their profits?

What is the formula for EPS?

What is the primary activities of a Financial Manager?

Describe the nature of the principal-agent relationship between owner and manager.

Explain the concept of Agency problem.

How can a firm address the agency problem?

What is the function of financial institutions?

What is the financial market?

What are the two types of financial markets?

What happens in the money market?

What happens in the capital market?

Explain the difference between primary and secondary markets.

Name the two types of primary market transactions:

the chief financial manager (Treasurer)
Is commonly responsible for handling financial activities, such as:

the chief accountant (Controller)
Typically handles the accounting activities, such as