World Business Expo

Finance consists of three interrelated areas, the money market and capital, investment and financial management in business or finance.

Money Markets and Capital

You must know the factors affecting interest rates, which regulations should be subject to financial institutions, the various types of financial instruments, business management, communication skills.

Investments

The three functions are investment area, sales, analysis of individual values and determining the optimal mix of securities to an investor.

Financial Management

Decisions regarding expansion, types of securities to be issued to finance the expansion, decide the credit terms on which customers can shop, the amount of inventory to be kept, the cash should be available, merger analysis, to reinvest profits rather than paid as dividends, etc..

Financial management in the early 90′s

It gave emphasis to statutory mergers, the formation of new businesses and the different values that could issue to finance companies in the 30′s the emphasis was given in bankruptcies and reorganizations, and corporate liquidity for of securities market regulations. In the 60′s the financial management attention focused on the administrative decisions of the choice of assets and liabilities that will maximize the value of the company until the analysis began to include inflation, and its influence on business decisions, in the deregulation of financial institutions, technological progress on financial activity and the importance of global markets and business operations.

The Globalization of Business

Four important factors for the global business trend are:
1) the progress in means of transport and communications have reduced shipping costs by facilitating international trade,
2) increasing the demand for cheap and quality causing tin reduction of trade barriers,
3) the technological advances on par with the increased costs of products in relation to the competitiveness of enterprises, and
4) the installation of manufacturing in countries with lower costs, and require producers to manufacture and sell globally to survive.

So the globalization trend continues to maintain the dynamic growth and ensure the best opportunities. With advances in technology and communications are also revolutionize the way decision-making, allowing management and analysis of information in real time. The importance of financial management has grown, as previously only had to avail itself of plant resources to expand, change and maintain equipment inventories, now part of the process and decision control, which greatly influence the planning financial. In all business decisions are financial implications, which requires clear knowledge of financial management to more efficiently perform specialized analysis.

To anchor and achieve the maximization of the organization is required: · Preparation of forecasts and planning · Decisions financial and investment of major importance, determining the optimal rate of sales growth and decide on the acquisition of assets and how to finance them · Coordination and control for the company to operate as efficiently as possible · Form of dealing with financial markets (money and capital), which are obtained funds and securities are traded in a company.

credit to: Enrique Macías García
Source: www.gestiopolis.com/recursos/documentos/fulldocs/fin/adminfinancieraenrique.htm
image source: www.brandft.co.uk/images/calculator.jpg

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