Spiel 1 Introdcution

 Lecture one particular Introdcution Dissertation

MASTER OF BUSINESS ADMINISTATION Program

The Role of economic

Management

Lecture 1

Doctor Svetlana Sapuric

1

MBA Program

The Role of

Financial Supervision

What is Economical Management?

The purpose of the Organization

Agency Interactions

External Factors and inventory price

Doctor Svetlana Sapuric

2

MASTER OF BUSINESS ADMINISTATION Program

What is Financial

Management?

Concerns the acquisition, financing,

and management of possessions with

some overall goal in mind.

Dr Svetlana Sapuric

3

MBA Program

Purchase Decisions

Most important the three decisions:

• Precisely what is the optimal firm size?

• What specific assets ought to be acquired?

• What assets (if any) should be lowered or

removed?

Dr Svetlana Sapuric

5

MBA Program

Financing Decisions

Determine how the assets (LHS of stability

sheet) will probably be financed (RHS of harmony

sheet).

What is the best form of financing?

What is the best auto financing mix?

Precisely what is the best dividend policy?

How can the cash be literally acquired?

Dr Svetlana Sapuric

5

MBA Program

Advantage Management Decisions

• How do we manage existing assets

effectively?

• Monetary Manager provides varying certifications

of operating responsibility over assets.

• Greater emphasis on current property

management than fixed advantage

management.

Dr Svetlana Sapuric

6

MASTER OF BUSINESS ADMINISTATION Program

The Financial Manager's

Responsibilities

Predicting and preparing

Major expense and funding decisions

Skill and control

Dealing with monetary markets

Doctor Svetlana Sapuric

7

MASTER OF BUSINESS ADMINISTATION Program

Precisely what is the Goal of the Firm?

Maximization of Shareholder

Wealth!

Benefit creation occurs when we improve

the share price for current shareholders.

Dr Svetlana Sapuric

eight

MBA Plan

Managerial Activities to

Maximize Stockholder Wealth

• Capital Structure Decisions

• Capital Budgeting Decisions

• Gross Policy Decisions

Dr Svetlana Sapuric

on the lookout for

MBA System

Agency Interactions

• An agency relationship is out there whenever a

principal hires an agent to act on the

behalf.

• Within corporations, agency associations

exist between:

– Stockholders and managers

Dr Svetlana Sapuric

15

MBA System

Stockholders versus Managers

• Managers will be naturally likely to act

inside their own needs.

• Nevertheless the following factors affect managerial

behavior:

– The menace of shooting

– The threat of takeover

– Structuring managerial incentives

Dr Svetlana Sapuric

11

The External Environment

Summary of

Factors

Impacting

Stock Rates

Summary

ofMajor

Major

Elements

Affecting

Inventory Prices

Exterior

Level of Financial

Constraints:

1 ) Antitrust Regulations

2 . Environmental

Regulations

a few. Product and

Workplace Safety

Regulations

some. Employment

Procedures Rules

your five. Federal Arrange

Policy

six. International

Advancements

Strategic Insurance plan

Decisions Manipulated

by Supervision

1 . Types of Products

and Services

Produced

2 . Creation Methods

Employed

3. Family member Use of Personal debt

Financing

4. Dividend insurance plan

Activity and

Corporate Fees

Stock Market

Circumstances

Expected

Success

Timing of Cash

Flows

Inventory Price

Degrees of Risk

Dr Svetlana Sapuric

12

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