3-2 Final Project Submission, Part I.docx - 1 Running Head...

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1Running Head: FINAL PROJECT SUBMISSION, PART 13-2 Final Project Submission, Part 1Southern New Hampshire University
2FINAL PROJECT SUBMISSION, PART 1 Financial managers are obligated to make three (3) major types of decisions on a daily basis. They are: capital budgeting decisions, capital structure decisions, and working capital management (Titman, Keown, & Martin, 2014). Capital budgeting decisions allow managers to decide on great or profitable investment choices. Capital structure decisions helps managers withanalyzing how to finance initial and continuing investment decisions. Lastly, working capital management assist financial managers with properly managing funds for the company’s daily operations. In other words, if a company receives a proposal for a business idea, it is the financialmanager’s responsibility to ensure that the proposal is analyzed, and its revenue growth assessed to determine its impact on the company. If the business proposal has long/short term benefits such as increasing net sales, net income, or the company’s stock prices, the financial manager would choose to invest in it. After which, the financial manager will need to determine how the company will be able to finance the production of the new idea by minimizing expenses while capitalizing on costs that are attributable to the new production. For publicly traded companies, financial managers will have to make choices that will directly impact or improve the wealth of the shareholders who are the ultimate owners of the company. By appealing to the needs of the company and that of the shareholder’s financial managers aim to maximize the company’s income by increasing dividends and growth where applicable.Financial managers are exposed to various ethical issues and it is there responsibility to act with great integrity whenever these situations arise. According to the Meriam-Webster Dictionary (n.d.), the term “ethical” is defined as “conforming to accepted standards of conduct.” With that being said, it is a financial manager’s responsibility to ensure that they areacting in a manner that is lawful, appropriate, and also in a manner that will not risk shareholder’s wealth or affect the company’s stakeholders.
3FINAL PROJECT SUBMISSION, PART 1 Many financial managers face the “balancing act” ethical issue where they toggle between acting ethically while adhering to the many demands of the CEO or board of directors. Since the aim of CEOs or the board of directors is to maximize earnings, a financial manager may find themselves in positions where they question their integrity or the ability to act ethically for the sole purpose of helping the company achieving its long-term goals. If the financial manager notices that the company had acted unethically in achieving its objects, he/she must report these findings to the CEO and ensure that they are corrected immediately.

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