Financial compliance is the prime responsibilities that ensure the business complies with legislative acts rest with director’s board. As a financial manager, there are various decisions he/she must meet for a sound management. One of the decisions made is investment decision or capital budgeting decision. This relates to selecting assets which later will be invested by the firm. There are a couple of options a firm has to invest but the most appropriate investments are considered. In addition, the financial manager asses the cash flow of the project proposed. For instances, when companies are committed in hopes of financial gain, huge funds are expected for proposed investments. Financial managers should asses the amount of cash flow proposed in an investment proposal ( Titman, Keown & Martin, 2017).
Secondly, as a financial manager, scope of capital budget decision or importance is a key role which orients the fortune of a company. Some various reasons or primary decision are important due to; long-term growth, a considerable amount of money used, the risk involved, and non-reversible decision. In addition, financial decision is an important role that a financial manager has to play. Some of the few sources of finance in an organization are; shares issuing, and taking advances and loans. There are two categories of sources of finance which are categorized as owner’s fund or borrowed fund.
Delegate your assignment to our experts and they will do the rest.
Preparation of reports that oversee the accounting function and investment plan is the main purpose of report preparation. There are also involved in other financial institutions and branch management. Some ethical issues facing financial management are as follows; accuracy, transparency, timeless, integrity and risks. These ethical issues are carefully handled through organization teamwork and transparency. There are final rules of governing the customer’s record and information which have been issued by the Federal trading commission. Mainly the rules govern and protect the financial institution matters to its jurisdiction. The aims of this evaluations are to; pledge to confidentiality, and security of various records. The commission ensured the requirements to the rules were accommodated to a diverse range of all financial institutions ( Soans & KP, 2017)
Developing implementation and maintaining comprehensive information, are the requirements which the rule over FTC requires in any financial institution. As part of FTC programs, there must be regulations governed by each financial institution. First, there is a designation of employee or employees in co-coordinating the information security playbill. I addition there is assurance of contractors and service provider’s capability to maintain the peculiar safeguards for customer’s information. Lastly, there is an adjustment of information program in developments that are materially affecting the entity’s safeguards (Titman, Keown & Martin, 2017).
Private company “going public” simply explains how privately held companies sell their shares to public institutions. This is mainly done when the shareholders initially shift the shares to the public which is also referred as the initial public offering. One of the advantages of IPO is the access to capital. In addition, the shared capital has no interest rate and it is not repaid. Another important advantage of IPO is creating awareness in small business which leads to new opportunities and increases in customer range. Lastly, there is the ability in creating incentive packages for both employees and management. The largest disadvantage in “going public” is time wastage in processes involved.
US stock market differs in various ways; decline in stocks as investor’s experience inevitable parts of investing. There are various types of stock market declines. Looking back at stock market past shows that there has been a wide, varied intensity, and frequency of market decline since 1948. There are various investment products available in stock markets which includes; shares, bonds, security, and equities. Some of the institutions that sell the products are; government, business firms, and companies.
Reference
Soans, F. S., & KP, S. K. (2017). Financial management and local governance. Financial management , 2 (2).
Titman, S., Keown, A. J., & Martin, J. D. (2017). Financial management: Principles and applications . Pearson.
