Question

Finance grew out of economics and accounting, and it is generally divided into three areas. Financial management, also called corporate finance, focuses on decisions about acquiring assets, raising capital, and running the firm so as to maximize its value. Capital markets relate to the markets where interest rates and stock and bond prices are determined. Investments involve decisions concerning stocks and bonds and include security analysis, portfolio theory, and market analysis. These areas are closely interconnected Is called___________.

Answer 1

Answer:

Financial management

Explanation:

The basic concepts regarding financial management can apply to all types ans sizes of organizations. Of course the work involved in managing the finances of a small partnership are not the same as those of an investment bank, but the basics remain. Finance is all about the value of money in time.

A company can have a very healthy balance sheet, but it may not be able to pay its utilities (electricity, water, gas) at the end of the month. That is why the net cash flow is so different than the income statement. A company may generate millions in revenue, but if they are not able to collect accounts receivables in time, it is useless.

Cash flow management is the number one priority in finance.