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What is Economy and Finance
This field contains terms, management methods, various analytical techniques, financial indicators and standards, whose subject is financial management in a business or an organization.

Financial-management-topic“In fact, a business can contribute to social welfare only if it is highly profitable.”

Peter F. Drucker

Economics and finance contains terms, management methods, various analytical techniques, financial indicators and standards, whose subject are the financial management in an enterprise or organization.

It includes the comprehensive financial management, various financial management methods, i.e. the handling of financial resources throughout their life cycle - from fund and capital (financing, financial market) raising, budgeting, allocation and distribution of financial resources, management and effective handling of financial resources, financial risk management, profit sharing and other financial operations in the organization.

The goal of financial management in a market economy is to maximize its market value, i.e. the market value of equity capital, for which managers through their work are responsible to the business owners and other stakeholders. The manager responsible for the financial management throughout the organization is called Chief Financial Officer (CFO). Other goals of financial management are: ensuring a business’ solvency, assets liquidity and return on assets (profitability) of the enterprise.

The objectives of financial management in public sector and Public Finance Management are described in the article Public Finance.

Financial management includes several different categories of processes such as:

Financial management methods:

Financial management methods are based on various financial indicators and statements:

Related terms and methods:

Related standards:

Related management field:

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Last update: 22.01.2016


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