PROCESS OF FINANCIAL MANAGEMENT

FINANCIAL PLANNING AND CONTROL: The financial management process begins with the financial planning and decisions. As well as, various financial plannings and decision are by the company for the implement these decisions. The company may choose various kinds of planning for their corporation or a business.
RISK AND RETURN: After implementing these decisions, the firm has to acquire a certain risk and return characteristics. The risk and the return will be acquired by a business after the financial planning and controlling and take the finance-related decisions.
 
MARKET PRICE OF SHARES: After the risk and return characteristics of the firm is also determine the market price of the shares in that particular process.
 
SHAREHOLDER WEALTH: After determining the market shares a corporation also determines the shareholder’s wealth in the process. This is equally important to the market price of share.
 
FEEDBACK: The process must include the feedback system to enable it to take corrective measures if required. And it t is the last stage of the financial planning process in the financial management.

FINANCIAL DECISIONS:

 

Leave a Reply

Your email address will not be published. Required fields are marked *