TUGAS ASSIGNMENT

CORPORATE FINANCIAL MANAGEMENT

FRANS SUGATA HERMANTO

ACCOUNTING / 2401955031
FINC 7007

Week 1

1. What is finance? Explain how finance effect all the activities in which business engage

Please upload your answer in Bimay, individual assignment, thanks

ANSWER

1. Finance is a broad term that describes activities associated with banking, leverage or debt,
credit, capital markets, money, and investments. finance is a system for money management
and the process of acquiring needed funds. Finance also encompasses the oversight, creation,
and study of money, banking, credit, investments, assets, and liabilities that make up financial
systems. The finance field includes three main subcategories.
personal finance, corporate finance, and public (government) finance.

Personal finance
individual financial process in planning a strategy to meet their needs in certain situations.
Corporate finance
related to financial activities in a running cooperative business.
Public finance
includes tax, spending, budgeting, and debt issuance policies that affect how a government pays
for the services it provides to the public.

Finance have a crucial role in running a business, it makes decisions for the survival and the
growth of a business. Various decisions regarding the organization are taken by analyzing the
financial statements as they help in ascertaining the viability in aspects related to financing.
 LABOUR/MANAGERIAL PERSONNEL
A financial position of a company can indicate that the business is capable to recruit
more experienced and well trained professionals that will prove an asset to the
organization in terms of making significant contribution in growth and expanding
capabilities of the business.

 DECISION REGARDING COST AND PRICING

Finance makes decision when there is a recession or even a crisis. Finance in a company
makes various of decisions regarding the crisis to avoid bankruptcy and retaining profits.

 GROWTH
Finance helps increase profit margin growth of a company by undertaking analytical
decisions but these might be different to many company’s by factors vary widely by
industry, size of business, market and even the taste for risk of the management and
ownership.
 Reference
 Kurt, Daniel. “What Is Finance?” Investopedia, Daniel Kurt, 23 Oct. 2020,
www.investopedia.com/ask/answers/what-is-finance/. Accessed 28 Mar. 2021.
 Hayes, Adam. “Financing: What It Means and Why It Matters.” Investopedia, Adam
Hayes, 2019, www.investopedia.com/terms/f/financing.asp. Accessed 28 Mar. 2021.
 Harvin, Henry. “How Does Finance Impact the Business Decisions in 2-021 [Updated]? |
Henry Harvin.” Www.henryharvin.com, Henry Harvin, 2021,
www.henryharvin.com/blog/impact-of-finance-on-business-decisions/#:~:text=Finance
%20basically%20serves%20as%20an. Accessed 28 Mar. 2021.