What are the three components of Financial System?

an organization that directs the transfer of financial resources from its source to potential users (Kaliski, 2007)

provides a financial platform for managers tO acquire funds from various sources (Kaliski, 2007)

-exchange of long-term securities -traded through brokers and dealers -may or may not occur in an organized stock exchange

-exchange of short-term securities -treasury bills, commercial paper, and negotiable instruments (Collins, 2012)

PSE is an example of?

any contract which produces a financial asset of one party while creating a financial liability or equity instrument of another (IFAC, 2020)

Buying items Using a Credit card?

increasing the business's value which also increases the value of shares held by its stockholders

short-term profits may increase at the expense of long-term profitability

elected by shareholders represents the shareholders in overseeing the business

highest officer in managing the business to achieve long-term (CEO) and short- term (President) goals for some companies, these are different persons and entities

responsible for leading revenue and client portfolio activities of the company

leads the creation goods and services

leads the human resources and general management activities

manages acquisition of funds, investments, operating activities, and dividend policies

handles external financing matters responsible for managing the cash, investments, and other financial resources

concerned with internal matters such as being in charge of accounting and the financial records of the organization

What are the 4 roles of Financial Manager?

when, where, and how to acquire funds for the company

2 types of Financing

what investments would be profitable to the company

how to finance working capital accounts such as accounts receivables and inventories

-how much should be distributed among the shareholders -how much should be retained for future contingencies