Chapter 1: The Role of Financial Management.
After studying Chapter 1, you should be able to:
- Explain why the role of the financial manager today is so important.
- Describe "financial management" in terms of the three major decision areas that confront the financial manager.
- Identify the goal of the firm and understand why shareholders' wealth maximization is preferred over other goals.
- Understand the potential problems arising when management of the corporation and ownership are separated.
- Understand the basic responsibilities of financial managers and the differences between a "treasurer" and a "controller."
- Discuss the issues underlying social responsibility of the firm.