Write a 1,250-1,500-word paper analyzing concepts of contemporary financial management within the context of today's economic conditions and the increased occurrences of corporate restructuring. Research financial management and corporate restructuring. Use a minimum of three articles to support your analysis. When researching, focus on articles which discuss real-world cases that exemplify the essence of each required component below and how they can or may have contributed to a corporate restructuring.  Your analysis should include a discussion of the following: The roles and objectives of financial management. The significance of evaluating financial performance, financial planning, and forecasting, and examples of how each can be carried out. Current conditions of fixed income and common stock securities and how these conditions impact financial management. Risk and return and its role in financial management. The main objectives of a firm or and individual should never invest there capital without ensuring that their assets. A company or and individual should invest there capital in a way that their assets will obtain an income of money before the liabilities demand an expense. Liquidity is important to firms, to ensure they are capable of maintaining an adequate and regular amount of funds. Capital budgeting is to insure that a firm is utilizing funds properly and to the best judgments while increasing the capacity of an enterprise. Capital structure management is in place to ensure that proper decision making is being practiced and that funding is allocated properly. Risk management is also important which includes the management of interest rates, financial, market prices, exchange rates, and credit management. It is important to have financial control of a firm and exercise the control of finances. The main roles of a firm are important to achieve the main goal of profitability for stakeholders and the firm. The upper level executives of a firm are given specific roles for different business units in an organization in order to have involvement of best practice in reporting, financial management and financial governance. For a company to be successful and legal, executives must perform adequate planning and budgeting to point out the liquidity slack and liquidity surplus periods. Its important for a firm to balance priorities within a budget and is responsible for the financial projections of the firm. An executive must know and understand how much a product is expected to cost and how much revenue it is expected to earn so that the executive can invest the appropriate amount in the product. While staying legal and ensuring the companies profitability, there are many risks to take in consideration. While playing out the duties as an executive it is important to manage risk throughout the company's balance sheet while providing robust advice on improving the performance of assets. In conclusion, there is a lot t.

1. Write a 1,250-1,500-word paper analyzing concepts of
contemporary financial management within the context of
today's economic conditions and the increased occurrences of
corporate restructuring.
Research financial management and corporate restructuring. Use
a minimum of three articles to support your analysis. When
researching, focus on articles which discuss real-world cases
that exemplify the essence of each required component below
and how they can or may have contributed to a corporate
restructuring.
Your analysis should include a discussion of the following:
The roles and objectives of financial management.
The significance of evaluating financial performance, financial
planning, and forecasting, and examples of how each can be
carried out.
Current conditions of fixed income and common stock securities
and how these conditions impact financial management.
Risk and return and its role in financial management.
The main objectives of
a firm or and individual should never invest there capital
without ensuring that their assets. A company or and individual
should invest there capital in a way that their assets will obtain
an income of money before the liabilities demand an expense.
Liquidity is important to firms, to ensure they are capable of
maintaining an adequate and regular amount of funds.
Capital budgeting is to insure that a firm is utilizing funds
properly and to the best judgments while increasing the capacity
of an enterprise.

2. Capital structure management is in place to ensure that proper
decision making is being practiced and that funding is allocated
properly. Risk management is also important which includes the
management of interest rates, financial, market prices, exchange
rates, and credit management.
It is important to have financial control of a firm and exercise
the control of finances.
The main roles of a firm are important to achieve the main goal
of profitability for stakeholders and the firm. The
upper level executives of a firm are given specific roles for
different business units in an organization in order to have
involvement of best practice in reporting, financial management
and financial governance.
For a company to be successful and legal, executives must
perform
adequate planning and budgeting to point out the liquidity slack
and liquidity surplus periods.
Its important for a firm to balance priorities within a budget and
is responsible for the financial projections of the firm.
An executive must know and understand how much a product is
expected to cost and how much revenue it is expected to earn so
that the executive can invest the appropriate amount in the
product.
While staying legal and ensuring the companies profitability,
there are many risks to take in consideration. While playing out
the duties as an executive it is important to manage risk
throughout the company's balance sheet while providing robust

3. advice on improving the performance of assets.
In conclusion, there is a lot to consider when taking on the
responsibilities of a financial manager.
There could be a lot of pressure with so many factors to
consider.
The future of the company and the future of stakeholders
investments lye in your hands.
It’s important to maintain legal operations ethically and provide
transparency to stakeholders.
You would have to capture and maintain interest in a company
to keep investors interested.
If the interest is lost in the eye of investors, the company is
basically lost.
So the financial managers are really holding a lot of power if
not all the power in the company. Therefore the objectives and
the roles of financial managers are crucial to future of the firm
and should be maintained very carefully in order to be
successful.
Common stocks will refer to the ownership interest in the
issuer's corporation, it does not require/result in the issuer to
pay on the fixed schedule. Which are issued by the
corporations, with a certain count of shares that are approved to
be issued by a board of directors. The common shareholders
have a right to vote on issues affecting the firm with each being

4. entitled to poses one vote. Also right to receive same dividend
amount per share only when they are approved by the board of
directors, most firms do not pay the dividends because they are
not guaranteed. Suppose a corporation is dissolved or closed
and turned into cash the common shareholders will have the last
claim on the valuable things of the firm, claims of preferred
stockholders, (companies that lend money) and bondholders
come first once they are paid/made up for, any sum left behind
from the closing (to turn into cash) of corporate valuable things
will be spread around to them (Fabozzi, 2001). The individuals
who put resources into basic stock ought to be educated of the
dangers it has, if the cost of regular shares may change
essentially, more than the cost of corporate securities or favored
stocks there is no insurance of come back to the holder.
However the load of an effective firm climbs extraordinarily
about whether and the holders are qualified for perceive these
benefits whenever throughout the offer of their stock.
A security is a financial gadget that represents an ownership of
an organization or a corporation, it is an exchangeable, open to
discussion gadget that represents a form of financial value. The
company or corporation that issues it is referred to as the issuer.
Commonly securities are separated into equities that show
ownership interest that a shareholder has on a corporation and
securities which shows borrowed money that are should be paid.
In most countries sale of securities are (made two or more
things look the same or happen at the same time) or controlled
by organizations such as the Securities and Exchange
Commission. Public companies have two categories of securities
which they issue, the fixed stock security and the common stock
security. A paper valuable thing consisting the possibility to be
traded in small amounts mainly in the derivative market is
referred to as a security, those which pay fixed sum of income
are called fixed income securities on the other hand common
stock securities are believed to be the simple type of ownership
of any corporation (Fabozzi & Choudhry, 2004).
Fixed income securities are any type of securities apart from

5. equity that are able to force the issuer to pay on unchanging
program and the sum of payments may be changeable. In
general this security refers to an investment medium which
includes an admitted/recognized/responded to interest voucher
or favored dividend rate of income till the time when the
investment will be sold, the admitted/recognized/responded to
par value is referred by the issuer, or it is redeemed on the due
date and the date of maturity of the securities which have a
fixed sum of return of principal and a fixed income payments,
that's the reason for the are usually considered to be less risky
than common stocks and the strength of risk differs with the
credit superiority of the issuer because they represent a share of
the stockholders capital in a corporation or company. Some
types of this security include among others notes, certificates of
deposit, commercial paper, treasury bills and bonds.
In the changing economical condition and economic expansion
contemporary financial management has a very pertinent role.
Modern reforms of contemporary financial management are the
foundation for sustained economic growth and reducing
inequalities. Such successful financial management
strengthened budget execution. Through this Government is now
engaging in a second wave of improving financial systems to
deal weaknesses in governance.
The term “Contemporary” means that this approach to new
financial management which has a modern objective and
outlook for financial system and entail maximum economic
growth and strength. It involves new financial decision,
tracking the variance between actual and budgeted results and
identifying the reasons for this variance etc.
At the most fundamental level contemporary financial
management is concerned with managing assets, liabilities,

6. revenues, profitability and financial system. It goes a step
further in ensuring that the economic condition and financial
system remains on track to attain its goals and maximizing the
growth.
Contemporary financial management espouses transparency,
accountability and greater review and feedback in the finance
and budgeting process, with the aim of promoting sound
financial management and ensuring accountability also.
The New financial management introduces a system for use of
Funds which intended to finance only the targeted services,
programs and projects or pre-conditioned policies and, where
the recipient does not have discretionary power to spend those
funds. The funds must be appropriated efficiently as per the
prescribed method. Spending of money must be approved in
accordance with the provisions of the contemporary financial
management. Contemporary financial management having
Committees must be consulted regarding any lending or loans
etc. The recipient must have proper up-to-date audited financial
statements. Contemporary financial management encourages
forward planning by clearly setting out responsible
resources and deadlines.
Contemporary financial management creates new roles and
bodies to create systems and consistency throughout the
budgeting processes, to work to prevent opportunities for
corrupt practices, to implementing the policy changes, to
overseeing the use of funds within financial system, to take care
of use of public resources and for financial planning, budget
review and assessment. This lead to a more productive use of
resources. Provisions of Contemporary financial management
may also include penalties and disciplinary sanction. The main
aim is clearly to give the new mechanism, new edge and
position to the financial system.

7. Contemporary financial management is directly or indirectly
connected with Corporate restructuring. Corporate restructuring
comprises contemporary financial management. Firstly,
corporate restructuring is the process of reorganizing the
ownership and legal operational structures of a company in
order to make it more profitable, so that it is better organized
than at present. It is corporate management's term for the act of
partially dismantling and reorganizing a company in order to
make it more efficient and therefore more profitable. It
generally involves making major sacrifices by selling off parts
of the company and making severe staff reductions.
Corporate restructuring is the
process of restructuring, which included mergers, acquisitions,
divestitures, plant closings, the relocation of production
offshore, downsizing, and extensive reorganization of the
workplace. Companies are being urged to change because the
world is changing. People are changing; our society is
changing; competitors are changing; government is changing;
technology is changing. So it must be the duty of Management
to change and managers are being challenged to improve the
way they manage.
Corporate restructuring becomes necessary when a company
must improve its profitability and efficiency. C
orporate restructuring is not only inevitable, but necessary and
it has become commonplace in companies policy and business
circles.
There are a number of reasons corporations require
restructuring. It may be necessary due to change of ownership,
buy-outs, bankruptcy or takeovers. Corporate restructuring is
also described as debt restructuring and financial restructuring
as it usually involves the restructuring of the company's assets
and liabilities.

8. Restructuring can be accomplished by various methods. Out of
which one is the contemporary financial management also.
Restructuring can involve dismantling and rebuilding areas
within the company, which requires special attention from
management. Those involved in the restructuring effort usually
hire financial and legal advisers to assist in the negotiations and
transaction details.
Selling off portions of the company, such as a division that is
no longer profitable or which has taken too much of
management's time and not letting them concentrate on their
core business, can greatly improve the company's balance sheet.
Staff can be reduced by selling or closing unprofitable parts of
the company and by consolidating and outsourcing parts of the
company that perform non-profit-producing work, such as
payroll, human resources, etc.
The job losses and other unfortunate consequences of
restructuring are simply the result of impersonal market forces
over which businesses and governments have no control but
unfortunately the new global economic environment requires
larger and more powerful corporations and this result in
restructuring.
Restructuring lead to Changes in corporate financial
management. it include Sale of underutilized assets, including
patents and brands Moving operations such as manufacturing to
lower-cost locations, outsourcing operations such as payroll and
technical support to a more efficient third party and
reorganizing functions such as sales, marketing and distribution.
Restructuring also include refinancing of corporate debt in
order to reduce interest payments and Renegotiating labor
contracts in order to reduce overhead.
From a social point of view, a corporation is a sociological
institution as well as a collection of financial assets and, while

9. employees understand that corporate change is necessary for
corporate survival, they will not accept abrupt, radical change
imposed from outside that has nothing to do with current
business conditions.
The global economic environment is determined by the actions
of governments as well as corporate business. The growth of
ever-larger corporations through merger and acquisition
requires a supportive legal and political atmosphere.
Politicians are also unlikely to accept a craze for corporate
restructuring.
This atmosphere has been more than supportive as evidenced by
past many years of lax antitrust policy. federal and state
governments have given billions of dollars in subsidies, grants,
reduced taxes, and subsidized credit to large corporations,
directly and indirectly supporting corporate restructuring. To
the extent that corporate restructuring has been aided and
abetted by government policy, it should call into question the
conventional wisdom that corporate restructuring is the result of
impersonal market forces and it is right for the
Companies that they must disclose restructuring immediately
rather than wait for any potential damages.
The process of restructuring lies in the establishment of a
detailed strategy to transform the existing operations into an
ideal operation. The process must be performed carefully to
ensure that it will have the least adverse effect on the operation
and, most importantly, on the individuals who have worked in
the company for many years.
Restructuring improve the financial performance or economic
wealth by change in the financial restructuring and organization
restructuring. Here, financial restructuring may also called
Contemporary financial management and this restructuring
include significant changes in capital structure of an
organization, including leveraged buyout, leveraged re-

10. capitalization and debt for equity swap.
At Last, the process of corporate restructuring involves the
financial restructuring or changes in financial management as
one of the method of restructuring. This changes in the financial
management also called contemporary financial management
which lead to economic growth and expansion. Effect of
Corporate restructuring and contemporary financial management
on the performance of economy is very positive and very
important. In toto, a company that has been financially
restructured effectively will theoretically be leaner, more
efficient, better organized, and better focused on its core
business with a revised strategic and financial plan.