Corporate Finance 11th Edition
Who needs to study corporate finance and why?
Let`s duscuss some categories of individuals who need to have tangible knowledge of corporate finance in an organization.
Any commercial organization in the course of its activities is faced with monetary transactions. The sphere of corporate finance includes the distribution of material resources available in the company for various needs, settlements with credit institutions and much more. This concept has many nuances, and in order to fully understand it, it is necessary to carefully study what exactly corporate finance is. But does everyone need it? This article will define the categories of persons who simply need to have theoretical and practical knowledge in this area.
Who Should Know Corporate Finance ?
All persons who must have knowledge in the field of monetary relations in an organization can be divided into two large groups:
- company employees;
- private investors.
The employees of the organization who are directly related to monetary relations in the company include:
- financial director;
- financial analyst;
- Chief Accountant;
- direct manager of the organization.
The CFO is the backbone of any organization. Without it, the material side of the company's life would not be properly controlled. The duties of this employee include the development of the financial strategy of the enterprise. It defines long-term development goals and outlines an action plan for their implementation. Such goals may include expanding the sales market for products, concluding new partnership agreements, attracting additional investments, and more. It should be noted that this specialist does not directly implement the strategy; the treasurer is engaged in this.
It is the responsibility of the organization's treasurer to develop certain tactics, thanks to which the company will eventually come to the goal that the CFO has outlined. In some cases, the treasurer also performs a control function, that is, monitors the implementation of the designated action plan and the proper conduct of operations related to monetary resources.
The chief accountant and financial analyst perform similar functions, namely, they compose all the necessary reporting of the organization for submission to the tax inspection service. In addition, the analyst is responsible for assessing the company's performance. Based on the financial analysis, he makes recommendations to senior management on actions that can be taken to optimize production and achieve much better results. This textbook is highly recommended for preparation Corporate Finance 11th Edition.
Who needs to study corporate finance?
The work of all specialists in the field of corporate finance is regulated directly by the head of the company. It is he who always makes the final decisions, for example, whether it is worth attracting additional investments, taking commercial loans, expanding sales of products, etc.
And even if we are talking about a small company, the manager and owner of the business should be well versed in the "corporation". Despite its name, "corporate finance" is about any business, not just a large one. Since the goal of corporate finance is to competently use all possible sources of maximizing business value, regardless of its size.
Thus, for some employees of the organization it is extremely necessary to know everything about corporate finance, because the financial results of its activities directly depend on this. Another category of people who are also interested in such knowledge is private investors who want to invest their money in a particular company. They must be able to analyze the financial statements of organizations and draw conclusions about its liquidity so that the investment is effective and brings tangible income.