what is financial management and example| what are the objectives of financial management
When we think about finance, what comes to mind may include bank accounts,stock market, mortgages, mutual funds, hedge funds,derivative securities, venture capital, private equity, IPOs. Of course, these areall parts of finance-- financial products, services,markets, and institutions. But in fact, finance is a lotmore important and fundamental to our economy and our welfare. It is really about how to makethe best economic decisions or how to best utilize thelimited resources we have to meet our economic needs. We would like to illustratethis point with an example. Suppose that you are amarketing manager at a company. You are thinking abouta new marketing campaign for your existing product line. Independent of thedetails of the plan being online orthrough regular media, the ultimate goal is toincrease future profit from increasing sales. Of course, the plancould cost some money. Let's assume that the costof the whole marketing plan is $10 million today. If launched, you willincreas...