|The Goals and Functions of Financial Management|
- The field of finance integrates concepts from economics, accounting, and a number of other areas.
- The relationship of risk to return is a central focus of finance.
- The primary goal of financial managers is to maximize the wealth of the shareholders.
- Financial managers attempt to achieve wealth maximization through daily activities such as credit and inventory management and through longer-term decisions related to raising funds.
- Financial managers must carefully consider domestic and international business conditions in carrying out their responsibilities.
- Daily price changes in the financial markets provide feedback about a company's performance and help investors allocate their capital between firms.