2.How do the three key activities of the financial manager relate?3.What is the main goal of the financial manager? How does the risk-return trade-off relate to the financial managers main goal? financialiing a48MP QUAD CAMERAAlresourcesRiskHUAWEI Y7aManagementFigure No. 1: Financial Management FrameworkLet's Practice!(Answer on the separate sheet/s)Directions:This portion provides an activity which will help you transfer your new knowledge orskills into real life situations or concerns.Case Study!1. What is the role of financial management in a firm?2. How do the three key activities of the financial manager relate?3. What is the main goal of the financial manager? How does the risk-return trade-offrelate to the financial manager's main goal?REMEMBERKey PointsV To maximize the firm's value, the financial manager has to consider both short- andlong-term consequences of the firm's actions. Maximizing profits is one approach, butit should not be the only one. Such an approach favors making short-term gains over

Financial activities include not only the acquisition and use of cash, as well as the assessment of…

Answered: 2.How do the three key activities of…

2.How do the three key activities of the financial manager relate? 3.What is the main goal of the financial manager? How does the risk-return trade-off relate to the financial managers main goal?

Understanding Business

12th Edition

ISBN:9781259929434

Author:William Nickels

Publisher:William Nickels

Chapter1: Taking Risks And Making Profits Within The Dynamic Business Environment

Section: Chapter Questions

Problem 1CE

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Question

2.How do the three key activities of the financial manager relate?

3.What is the main goal of the financial manager? How does the risk-return trade-off relate to the financial managers main goal?

financial
iing a
48MP QUAD CAMERA
Al
resources
Risk
HUAWEI Y7a
Management
Figure No. 1: Financial Management Framework
Let's Practice!
(Answer on the separate sheet/s)
Directions:
This portion provides an activity which will help you transfer your new knowledge or
skills into real life situations or concerns.
Case Study!
1. What is the role of financial management in a firm?
2. How do the three key activities of the financial manager relate?
3. What is the main goal of the financial manager? How does the risk-return trade-off
relate to the financial manager's main goal?
REMEMBER
Key Points
V To maximize the firm's value, the financial manager has to consider both short- and
long-term consequences of the firm's actions. Maximizing profits is one approach, but
it should not be the only one. Such an approach favors making short-term gains over

Approach to decide on the efficient procurement and investment of funds for the day-to-day operations of a business. Financial management aims at profit maximization, and it includes financing and capital budgeting.

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