Question
a) Outline the key aspects of the financial manager's role within a large plc b) Some analysts and commentators make a distinction between the 'Anglo-Saxon'
a) Outline the key aspects of the financial manager's role within a large plc
b) Some analysts and commentators make a distinction between the 'Anglo-Saxon' and the "Contmental Europe Japanese approach to financial management. Briefly, explain the distinction
# The following is relevant #
a)
*They should comment initially that the fundamental objective of financial management is usually considered to be that of maximising shareholder wealth. All subsequent decisions should meet that objective (1)
*Financial management is concemed with financial planning and financial control (1)
*The financial manager will tend to make decisions in three key areas.
* Investment and capital budgeting - the financial manager will be involved in the decisions reg ardıng the acquisition of assets through carying out appraisal techniques (1)
* Financıng decisions- the financial manager concerned with the raising of finance at the lowest cost both to fund long term investment and short term working capital investment (1)
* Dividend decisions - linked to the above Retained profits are a source of finance but paying dividends may increase the value of the company and hence maximise sharcholder wealth(1).
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