BINAS, Miraflor S.

BSA 2
ANSWERS

Ø APPLICATION OF KNOWLEDGE / TASK:

1. Explain briefly the primary objectives of financial management
.
 Basically, the objective of financial management is to introduce to us the
different aspects of financial management, how financial management
works, and etc. And also to know how the company deals with the
problems or situations when it comes to finance, and what financial
strategies they can use in that certain situation.

2. Make a short research to grab data that illustrates the actual prices and intrinsic
values.

3. What type of business can you give to completely illustrate the graph of intrinsic
value and market price of a stock? Justify your answer.

 For me, the type of business I can give to completely illustrate the graph
of intrinsic value and market price of a stock is Corporation because it
determines that the intrinsic value is greater than the market value. In
corporation an intrinsic value investor will always look at it as an
opportunity and buy the stock at its current market value in expectation of
gain.

4. Critically evaluate various approaches to the financial management.

 Traditional approach: the variety of financial management is limited to
raise money from various sources, according to the conventional
approach. This approach is rather specific and looks at how an
organization receives funding for its financial needs. This is an outsider-
looking approach and funding is supplied by strangers.
BINAS, Miraflor S.
BSA 2
ANSWERS

 Modern approach: A more general view of financial management is taken

in modern approach and is applicable to the current situation. Financial
management is the topic of spending, funding and dividend choices,
according to the current approach. Decisions must be made in the three
fields so as to allow best use of the company's capital. Unlike the
conventional approach, the new approach looks at the internal situation
as managers decide on spending, funding and dividends.

4. Explain the scope of financial management.

 The financial management deals with decision-making, it can be

Financing, Investment or Dividend decision. Start studying the Financing,
Investment and Dividend, then after that, it will be easy for you to
understand what financial management is.

5. A.) Explain the importance of financial management.

 Finance is the organizational cornerstone. It must satisfy the demands of

the company. Any business enterprise must keep sufficient funds in order
to manage its business enterprise efficiently and must also keep the
organization patient to achieve its target. Only by successful financial
strategy can the corporate target be reached. At any moment and in any
case, we can not disregard the value of finance.

B.) Discuss the role of financial manager.

 Financial managers are in charge of an organization's financial stability.

They produce risk analysis, direct investment, and develop policies and
plans for their organization's long-term financial targets.