Financial Management II

1. Financial Management 2
K.V. Mendoza, MBA

2. What is Finance?
Finance within an Organization
Areas of Finance
 Jobs in Finance
 Trends that Affects Financial Management
 Global Perspectives

3. money management (dictionary)
application of economic principles to decision
making that involves the allocation of money
under conditions of uncertainty (Drake &
Fabozzi)

4. Economics
Accounting
Figure 1
Finance

5. Board of Directors
Chief Financial Officer (CFO)
Chief Operating Officer
(COO)
Chief Executive Officer (CEO)
Marketing, Production,
Human Resources, and
other Operating
Departments
Accounting, Treasury, Credit,
Legal, Capital Budgeting
and Investor Relation
Figure 2

6. 1. Financial Management
2. Capital Markets
3. Investments

7. Banking
Investments
Insurance
Corporations
Government
Value Based Management
provides a precise and unambiguous metric—value—
upon which an entire organization can be built.

8. 1. Changes in business practice
2. Increased globalization
3. Ever improving information technology
4. Corporate governance

9. Business Ethics
A company’s attitude and conduct toward its
employees, customers, community, and
stockholders.
 The Enron Scandal
 Strong push to improve
business ethics in
America

10. end of lecture 1