Finance And Financial Management : The Major Sub Areas Of Finance

The word Governance is derived from ‘gubernate’, meaning to steer. Corporate governance would mean to steer an organization in the desired direction. The responsibility to steer lies with the top and the middle level of management. Governance, in simple terms, means administering the processes and systems placed for satisfying stakeholder expectation. When combined Corporate Governance means a set of systems procedures, policies, practices, standards put in place by a corporate to ensure that relationship with various stakeholders is maintained in

This paper will enumerate the objective of the financial management course offered at the Benedictine University. I will investigate the pertinent questions that will help evaluate the course objectives. Furthermore, the paper will evaluate the lessons learned. In the end, an inferred decision will be made based on my evaluation of the course. I will infer from the analysis whether the course will be worth the stakeholders investment.

"Agency is the relationship that exists between two persons, when one, called the agent, is considered in law to represent the other, called the principal, in such a way as to be able to affect the principal 's legal position in respect of strangers to the relationship by the making of contracts or the [sale or purchase] of property."

Agency relationships in a business organization exist between the principal, who are the owners or capital providers of the firm and the management, who form the agents. To avert conflict between the agents, the management should seek to fulfill the duties and responsibilities vested upon them by the principal. However, management actions may lead to agency costs, which may be excessive or unnecessary emanating from the agency conflict. The agency costs may entail excessive remunerations to self, neglect of duty, empire building by the management, pursuit of sales growth at the expense of shareholder wealth or profits, inadequate investment of corporate resources in potentially profitable ventures at the expense of the shareholders, assigning excessive perks to self, manipulation of dividend policy rather than wealth creation, and employee welfare objectives.

Conflict of interest is defined in Walton and Henderson (2005) as circumstances in which some interest of a person has an inclination to be at odds with the consistent exercise of his discernment in another’s interest. The idea of conflict of interest in that perception touches on positions of decision-making with a practical importance such as a company management’s discussion and acceptance of a decision and determinations of a board of directors of a business establishment. Hence, the conflict is a psychological one resulting from within a human or organization that is authorized to make decisions (p.4-7).

Corporate governance introduces structure where accountability and control of corporations are put in place. It is concerned with how corporate entities are governed as distinct from the way the company is managed. There is both self and legal regulation in the guideline of corporate

Corporate Governance for the most part alludes to the mechanics and techniques by which organizations are controlled and guided. Corporate Governance includes keeping up the enthusiasm of the shareholders of the organization, administration, government, financers, suppliers and the group. It gives the skeleton to attaining the association 's goals.

Corporate governance is a system that ensures companies are directed and controlled (Roberts 2016a). Boards of directors are essential for companies, because they have the obligation to governance the whole company and draw up long-term scheme to make it success (Roberts 2016a).

Definitions of corporate governance are many. According to Organization for Economic Co-operation and Development (OECD), “Procedures and processes according to which an organization is directed and controlled. The corporate governance structure specifies the distribution of rights and responsibilities among the different participants in the organization – such as the board, managers, shareholders and other stakeholders – and lays down the rules and procedures for decision-making.”(Reference)

The corporate sector constitutes a dominant part of industry. Financial sector reforms along with the development of the capital market are changing the structure of corporate financing. This has led to a separation of ownership and the management and has given rise to the issue of corporate governance, among others. Corporate governance essentially deals with the ways of governing the corporations so as to improve their financial performance. The need for governance arises mainly due

Financial management is important to organizations in order to manage the organization 's capital expenditures, manage the organization 's "operating cash"/cash flow, lower expenses and plan for the taxes as well benefiting the healthcare sector by evaluations and planning, investment decisions, capital management, contract management, working capital management, and financial risk management (Johnston, 2016). Financial statements, which are summaries that show an organization 's current financial position, can provide organizations/individuals key data and information about their financial performance by providing the concepts and tools to make better financial decisions (Johnston, 2016; Zelman, McCue, Glick, & Thomas, 2014). This

Corporate governance is also the way a corporation policies itself. The method is governing the company like a sovereign state, in stating its own customs, policies and laws to its employees from the highest to the lowest levels. Corporate governance is intended to increase the accountability of the company and to avoid massive disasters before they occur. Well-executed corporate governance should be similar to a police department’s internal affairs unit, weeding out and eliminating problems with extreme prejudice. The corporate governance mechanisms provide assurance that the people who sink in the capital will get back the return on this capital.

Introduction to Financial Management Learning objectives: The purpose of this lecture is to provide you with an overview of financial management. After finishing this lecture, you would be able to have a better understanding of the following. Definition of financial management Significance of financial management for non-finance students and professionals Important concepts and areas in financial management The position of financial managers in organizational hierarchy and their respective work domains. Different business legal entities, their advantages and limitations. The external and internal business environments and their relevance to financial management. Different types of

Corporate governance generally refers to processes by which the organizations are directed, controlled and held to account and is underpinned by principles of openness, integrity and accountability.[1]

Financial Management as an academic discipline has undergone fundamental changes as regard its scope and coverage. In the earlier years, it was treated synonymously with the raising of funds. In the later years, its broader scope, included in addition to procurement of funds, efficient use of resources.