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This document summarizes various topics related to finance opportunities, corporate finance functions, responsibilities of finance staff, trends and challenges, and goals of corporations. It also defines agency relationships and problems. Specifically, it provides examples of finance career opportunities for postgraduates, outlines the typical organization of a corporate finance department, and lists the primary duties of finance staff like accounting, budgeting, auditing, and forecasting. It also discusses current issues in financial management like technology and regulations. Further, it states that the main goals of corporations are usually profit and market dominance. Finally, it defines an agency relationship as one where an agent represents a principal, and an agency problem as a conflict of interests between the two parties.
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Principles of corporate finance
The document summarizes key concepts from chapters 1-2 of a textbook on petroleum economics and corporate finance. It discusses:
1) What a corporation is, how it differs from other business structures, and how ownership is separated from management through shareholders electing a board of directors to oversee top management.
2) The role of the financial manager in budgeting, financial projections, investment decisions, and interacting with financial markets to raise capital.
3) Key concepts in corporate finance like net present value analysis, discount rates, and opportunity cost of capital.
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Introduction to Business Finance and its importance.
Introduction to Business Finance and its importance.
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oppurtunities and challanges in financial management.pptx
Margret juliee pe_2015_2stakeholdersgovernan_fraudinfinancialstate
Margret juliee pe_2015_2stakeholdersgovernan_fraudinfinancialstate
266458904-The-role-of-financial-management-ppt.ppt
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Case study
- 1. DiveIn!Case Study Analysis Presented By: Richa Manjhi
- 2. 1.What are the various finance opportunities open to a Finance post-graduate? Accounting jobs Capital budgeting Work in finance analyst and investment sector Cash manager Financial Manager Finance officer, Risk manager, Insurance manager, Treasures, Manager finance & accounts, Financial managers as consultants Financial Planner
- 3. 2.How is the finance function organized in a corporation? Acquiring funds for the firm, Develop Strategic Thrusts Production decision Finance function Working capital function Dividend decision
- 4. Cont.. BOD MD/Chairman/ CEO Director Director Director
- 5. 3.What are the primary responsibilities of the finance staff in a corporation? General Accounting Compliance Budget Formulation and Analysis Audit and Risk Management supply and demand which includes the inventory profit margins meaning the amount you make minus all the costs to be figured in. The only other thing that they do is to project income to be made, which is the forcast of all things to the bottom line and then report on their findings and give data for changes to made...
- 6. 4.What are the current trends & challenges in Financial Management? Transaction cost Technology Finance Geographic concentration Regulatory Political Venture capital Hedge fund
- 7. 5.What are the primary goals of a corporation? Profit Market Dominance Innovation Expansion Making money
- 8. 6.What is an agency relationship? (or agency problem?) Agency problem:- A conflict of interest inherent in any relationship where one party is expected to act in another's best interests. The problem is that the agent who is supposed to make the decisions that would best serve the principal is naturally motivated by self-interest, and the agent's own best interests may differ from the principal's best interests. The agency problem is also known as the "principal– agent problem."
- 9. Cont… Agency relationship:- THE NATURE OF AGENCY: agency – a relationship that exists when one party represents another in the formation of legal relations agent – a person who is authorized to act on behalf of another principal – a person who has permitted another to act on her or his behalf
- 10. AGENCY DEFINED THE AGENT – PRINCIPAL RELATIONSHIP P A (Principal) (Agent) ©2001 Nelson Thomson Learning