Dela Cruz, Camille Joyce C.

BSA 1A

1. Corporate Finance or Business Finance

Based on what I understand from our discussion; corporate finance or business finance
involves decision-making within the firm for the funding or allocation of money for the operation
of the business. It is concerned with the acquisition and conservation of capital funds in meeting
the financial needs and objectives of the business. Business finance includes reading financ ia l
statements, it also assesses the probability of profit and loss and the cash flow of the company.
Business finance provides instruments or tools to plan strategies for the management of finances
of the business.

2. Financial Manager and Financial Management Decisions

Financial Manager supervises and handles the financial activities of a company or a

business. They get to look into the financial capacity of the business and allocate it into better use.
They advise and guide the owner or the upper management to distinguish where and how they
should allocate and acquire the company’s assets. They manage financial resources in both short
term and long term. They are important in making financial management decisions such as the
investment decision, the financing decision and dividend policy decision. Financial Management
Decisions are the decisions made by the company for the maximization of profit, wealth of the
stockholders, the value of the business and other related to the business.

3. Goals or objectives of Financial Management

There are five goals of financial management mentioned last discussion.
1. Stockholders wealth maximization. Financial management helps the stockholders to
maximize their wealth and that can be achieved through maximizing the market value of
the share of stocks in the capital market.
2. Profit Maximization. The assess the economic performance of the company for a particular
period. Profit maximization is achieved through maximizing the net income of the
company.
3. Maximizing the value of the business can be accomplished by improving its book value,
growth and stability.
4. For improving quality of life in the community, the company should create job
opportunities for the people. It is helpful for both the community and the growth of the
company.
5. Social responsibilities. The company has responsibilities to the society.