Activity 1

Name: Krystal Guile N. Dagatan

Section: 3 BSAB-D

Based on the topic presented in lesson 1, answer the following questions. (5points
each)

1. Explain the role of financial manager to the firm.

A Financial Manager role to the firm is that they are responsible for distributing
the firm’s financial resources, is in charge of budget planning, and helps the
executive management team make the best business decisions for the company
by providing insights and financial advice.

2. Described how financial management will bring success in business operations.

Financial management helps the business to keep up with the cash supply to
fund the company’s main operations , identifying and creating safe investment
opportunities for the business. Ensuring the business is successful and
profitable.

3. Distinguish profit maximization between of overall value maximization of the firm.

The main distinction between profit maximization and wealth maximization is that
profit maximization focuses on short-term earnings, whereas wealth
maximization focuses on increasing the overall value of the business entity over
time.

4. Describe the function of Financial Management.

The function of financial management are Forecasting and financial decision,

Making Crucial, Investment and Financing Decisions, Coordinating and
Controlling, Trading in Financial markets and Risk Management. It is a
management skill to plan, organize, direct and control the financial activities of
the enterprise. Financial management functions dealing with the procurement of
funds and the effective utilization in business.
5. Explain the goals of financial management.

The primary goal of the financial management is to maximize the firm’s value to
its owners. The share price of a publicly traded corporation’s stock determines its
worth. The financial manager must consider both the short- and long-term
consequences of the firm's actions in order to maximize the firm's value.

The Valuation approach means that the primary goal of financial management is
to maximize not only profit, but also value. The Valuation Approach is named
after the valuation of the firm’s overall value.

Social responsibility requires businesses to act in ways that benefit society in

addition to maximizing shareholder value. Investing in businesses that are not
only profitable but also benefit society and the environment.