In: Business and Management

Submitted By ericabrock90
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Week #1 Checkpoint: Financial Management Goals Erica Brock Due Sunday Nov. 25, 2012 Nic Lane
Financial Management refers to a rulebook which a business must follow to be accountable to their shareholders, stakeholders and the general public. See financial management is the essential because a big amount people can be affected by the unethical behaviors and the actions on a business. The employees deserves to know what’s going on in the upper management and with the company as a whole just in case in advance of potential but yet serious problems. The shareholders and the general public have to know to because the shareholders got to know what are going on with company and what they’re investing. Their money depends on its financial strength of the company.
The general public has to know for the fact of the transactions of a public traded company, just in case if there is catastrophe, which they could be responsible for it bailing out of the company including with the taxpayers money. Economic status in company’s market place could include price earning ratios, the earnings per share, the price and cash ratios, book value per share, dividends yielding, market value per share and the marker and book ratios. The market value gives the management an ideal of what the company or firm investors thinks of their performance and future prospects. If a company’s ratios are good then the market value ratios can or should reflect on that and stock prices may go high.
The increasing of a company’s stock prices depends on the business managers trying to maximize the wealth. When stock prices increases an individual who holds the stocks wealth does increase too. If the stock prices goes up the firms or company’s value increases and the net worth of the individual who owns the stock will increase. When managers or management makes decisions it affects the stockholders in many…...

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