The Role of Financial Management in a Firm

Examine the role of management as it relates to finance in a corporation. In your post, discuss the role of management by addressing the following prompts:

 

Explain the various aspects of finance that management must understand.

 

Describe why a manager needs to understand the characteristics and importance of financial markets including their liquidity, competitiveness, and efficiency.

 

Interpret the function of the Financial Balance Sheet in assisting in management’s decision making process.

 

Discuss what could happen if management does not fulfill responsibilities related to finance. Share a real world example from your own professional experience or from an external source.