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Essay / Research Paper Abstract
This 3 page paper looks at the role of a financial manager and considers how the view of this role may vary between the shareholders and the employees of the company. The bibliography cites 2 sources.
Page Count:
3 pages (~225 words per page)
File: TS14_TEfinmangr.rtf
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Unformatted sample text from the term paper:
able to make a profit, or at least avoid a loss. This means there need to be financial planning and management, which may include budgeting, projections and controls. These are
essential for the survival of a form, but may also be seen as very essential as far as investors are concerned. In most cases there is usually only a
single reason that an investor will buy shares in a company; this is to make profit. Even where the shares are bought for more sentimental reasons such as to support
a sports team or as an emotional association such as the purchase of one share of a company such as Disney or Harley Davidson, there is the desire to see
the company survive. If the financial manager is on the board then they are working for the shareholders who are the owners of the company, the board at o behalf
of the shareholders to add value. If they are not on the board they are working for that board. The profit may be made in one of two ways;
both of which require financial planning and management. There maybe the creation of profit that is then distributed as dividends on the share. This gives a short term return.
Not all firms will pay dividends, especially in the earlier years, as they will want to grow and the profits will be reinvested.
The profit in this case will be hoped for with the increase in the share value. The price of a share will reflect the supply and demand in the market
place. Where there is believed to be a good future and increased profits there will be a higher demand for shares than where there is not an increase seen. Where
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