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    Ass 1 Principle of Finance

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    Nurul hidayah
    Financial management provides important benefits across multiple areas of business and personal finance: 1) For marketing, it provides budgets for campaigns, oversees expenses, and manages funds for new campaigns. It also helps with financial planning and predicting expenses. 2) For accounting, it prevents legal issues from poor records and helps prepare accurate financial statements to analyze financial position. 3) For management, it helps outline long-term goals, achieve goals through strategic planning, and sustain performance during economic fluctuations.

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    Ass 1 Principle of Finance

    Uploaded by

    Nurul hidayah
    52 views6 pages
    Financial management provides important benefits across multiple areas of business and personal finance: 1) For marketing, it provides budgets for campaigns, oversees expenses, and manages funds for new campaigns. It also helps with financial planning and predicting expenses. 2) For accounting, it prevents legal issues from poor records and helps prepare accurate financial statements to analyze financial position. 3) For management, it helps outline long-term goals, achieve goals through strategic planning, and sustain performance during economic fluctuations.

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    ASS 1 PRINCIPLE OF FINANCE

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    Financial management provides important benefits across multiple areas of business and personal finance: 1) For marketing, it provides budgets for campaigns, oversees expenses, and manages funds for new campaigns. It also helps with financial planning and predicting expenses. 2) For accounting, it prevents legal issues from poor records and helps prepare accurate financial statements to analyze financial position. 3) For management, it helps outline long-term goals, achieve goals through strategic planning, and sustain performance during economic fluctuations.

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    52 views6 pages

    Ass 1 Principle of Finance

    Uploaded by

    Nurul hidayah
    Financial management provides important benefits across multiple areas of business and personal finance: 1) For marketing, it provides budgets for campaigns, oversees expenses, and manages funds for new campaigns. It also helps with financial planning and predicting expenses. 2) For accounting, it prevents legal issues from poor records and helps prepare accurate financial statements to analyze financial position. 3) For management, it helps outline long-term goals, achieve goals through strategic planning, and sustain performance during economic fluctuations.

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    BACHELOR IN BUSINESS ADMINISTRATION

    BBCF1013 PRINCIPLES OF FINANCE

    ASSIGNMENT 1

    PREPARED FOR
    MR. WAN MD AFNAN

    PREPARED BY
    MUHAMMAD ZAIHIER BIN MD ZANAR
    202009040083

    SUBMISSION DATE
    27th FEBRUARY 2021
    QUESTION 1

    a) Marketing

    Financial management will assist the organization by providing budget for timely
    campaigns. They will oversee the various marketing expenses for each campaign, and they
    will manage the funds for the new campaign as well as they will save the funds for the
    important marketing efforts. In addition, financial performance can also help marketers with
    high estimates. For example, a financial manager can help for marketing research to predict
    marketing expenses and plan ahead for various marketing elements. Finally, financial
    management can also add marketing financial products with financial creativity. For
    example, financial management helps the marketing and promotion activities to remain on
    track, correctly monitor the financial operations of the organization and prevent any financial
    failures that could cause costs for the company.

    b) Accounting

    Good financial management will prevent the organization from legal problems. Thus,
    poor financial records can cause organizations to be audited and can cause them to be in
    unnecessary legal trouble. Moreover, financial management can make good preparation of
    financial statement in an organization. Using corporate bank statements and knowing the cash
    flow will help companies come up with plans and what keeps their company running is an
    estimate. Strong accounting offers a corporate management framework and provides a solid
    foundation for sustainability and growth. Ultimately, financial reporting helps interpret
    results. By analyzing past liabilities and current assets and other financial documents, a firm
    can determine its financial position. This post is an opportunity to learn and make more
    accurate choices about preparing for a more sustainable future than previous mistakes.
    c) Management

    The importance of financial planning in the field of management where it can outline
    long-term goals in the organization. Financial Management helps organizations achieve their
    goals without fail. By having a strategic thinking, management teams will make a pre-
    planning and managing the cash available in the organization helps eliminate possible future
    crises while moving forward to achieve goals. In addition, financial management helps
    sustain the economic downturn and increase profitability of an organization. Depression,
    depression, boom or failure, all add to the collapse of the business. With adequate finance and
    significant financial management, organizations become easier to run business cycles.
    Finally, it helps managing job performance in the organization. Managing the inflow and
    outflow of money in an organization is important. Businesses generate large sums of money
    every day. If the above fails, it becomes difficult to allocate funds efficiently and effectively.

    d) Personal Finance

    Effective individual income control can be helped by learning proper financial


    management. It is possible to more efficiently handle revenue through a given strategy. You
    can priorities your expenditures and recognize unnecessary expenses, adjust rapidly as your
    financial condition changes, and meet your financial goals by planning and monitoring your
    budget. Have a nice understanding of economics, too. You are in a stronger place, through
    financial planning, to consider your finances through observable financial objectives and the
    effect of decisions taken. Finally, if your investments are not enough, unexpected financial
    alterations will still render you unforgettable. An investment with high liquidity that can be
    used in emergency situations is always nice to have. It will take time to make a savings goals
    and force you to face some of the financial implications that you have avoided, but in the end,
    it's worth it.
    QUESTION 2

    a) Ordinary Shares
    Ordinary shares are also referred to as ordinary shares in which the company
    allows shareholders the right to vote at board meetings, as well as income from
    company income in the form of dividends. The quantity of ordinary shares owned by
    investors indicates that they have a share in the percentage of ownership of the
    company. A business, for example, has issued 100 shares on a stock exchange and
    you own 50 of them, so it owns 50% of the company’s stock. Ordinary shares do not
    have a maturity date. This indicates that until the business chooses to stop on its own
    or until another company takes over, interest in the business will not be affected.
    b) Bond
    We will clarify that bonds are company-issued debt certificates. This is an
    arrangement between an investor and a government or corporation. Let's say
    businesses have a deficit estimate to expand their business. The best way to increase
    capital is to sell bonds to the public for their funding needs. In exchange for interest
    and return on the principal at maturity, they lend the money to the lender as investors
    buy bonds. Since bonds usually pay fixed interest rates to investors on a regular basis,
    they are often referred to as securities with fixed income. In bonds, for instance,
    company Z issued a 20-year bond with a face value of RM10,000 and registered a 5%
    coupon rate. Then the investor decided to purchase the bond if, for a term of 20 years,
    the corporation pays him RM5,000 with interest per year. The corporation will pay
    back RM10,000 to investors at the end of 20 years.
    c) Loan
    A loan can be determined as a sum of money to be borrowed from a bank or
    other financial institution. In doing so, the borrower has incurred a debt and has to
    repay the amount borrowed. For example, individual X has borrowed money from the
    bank amounting to RM10,000 and he has to repay RM10,000 with interest given with
    a certain amount and period to the bank. The borrower and the lender must agree to
    the terms of the loan before the money is handed over to the borrower. Loans can be
    given to individuals, companies, and governments. The main idea behind issuing it is
    to raise funds to increase the overall money supply. Interest and fees serve as a source
    of income for lenders.
    QUESTION 3
    a) Corporate Finance

    Management concerned with the capital structure of a business, including its


    funding and the measures that management takes to increase the value of the
    organization. In corporate finance, the tools and analysis used to priorities and
    distribute financial capital are still used. The overall goal of corporate finance is to
    maximize an organization's value by controlling and deploying resources while
    attempting to balance revenues and expenses. We will clarify three corporate finance
    practices, capital expenditure to decide which project to acquire and invest in, and to
    gain the highest possible risk-adjusted return, capital financing to assess how to fund
    capital investment and maximize the capital structure of the business, and finally,
    dividend and capital return, to decide how and when to return capital.

    b) Investment

    An investor is an individual or organization that invests capital to generate an


    income or to make money. For the purpose of making a profit, personal investment is
    purchasing financial securities or assets. Investors may spend their money in financial
    assets such as stocks, bonds, mutual funds and currency-traded funds. Besides, by
    make an investment in a specific financial institution, there are risk versus return
    where when high return means there is high risk and asset allocation to investor.
    There is a sort of investment, a share that gives the ability to voting at board meetings
    is common stocks. The types of securities that are commonly considered low-risk are
    bonds. A mutual fund includes several individuals' pooled assets. Exchange-traded
    funds are particular types of alternative investments that aim to match a pre - defined
    index's results, such as the S&P 500. Lastly, investment also give job opportunities to
    broker, portfolio manager and security analysist too.
    c) Financial Institution

    A financial institution is a middleman between clients and the suppliers of


    banking and financial services in the capital or debt markets. Financial institutions are
    responsible for supplying the economy with liquidity in the form of loans, deposits
    and assets by moving funds from investors to businesses. A broad range of business
    practices are represented in the financial services industry by financial institutions,
    including commercial banks, investment companies, insurance firms, brokerages and
    clients. A commercial bank would be where, as opposed to an investment bank, most
    individuals do their banking. Investment banks specialize in the provision of services
    aimed at promoting company's operations. Insurance companies offer insurance, one
    of several earliest financial services, whether for individuals or companies.

    d) International finance
    The study of monetary relations between two or more countries is international
    finance, also known as international macroeconomics. It focuses on areas such as
    international investment and medium of exchange rates. The Mundell-Fleming
    Model, which studies the relationship between the demand for goods and the money
    market, is a particular field of study. An international finance theory that assumes
    nominal interest rates represent variations in the spot exchange rate between nations is
    the International Fisher Effect. The Optimum Currency Area Theory notes that if the
    whole area adopted a currency union, some geographical areas would maximize
    market prosperity. Spending power comparison is the calculation of prices using a
    single product or a similar collection of goods in different areas. An equivalence point
    in which investors are insensitive to interest rates attached to bank deposits in two
    separate countries is defined by interest rate parity.

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