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Finance - Coggle Diagram

- - - - Takes care of:
        
        set the methods, objectives and establish standards.
        Maximize the current value of the company.
        Contribution of the development of the socio-economic environment of the country
        Balance between profitability and risk.
  - - - The principle of diversification
        
        can make useful contributions to knowledge management.
  - - - Economic and competitive environment: Value and efficiency
        
        Economic environment: Consists of the factors that affect the purchasing power and spending patterns of consumers.
        Competitive environment: Each company must take into account its size and position in the industry.
        Value: Degree of usefulness or aptitude of things, to satisfy the needs or provide well-being.
- - - - Objective of financial management.
        
        Obtain the funds and financial resources
        The correct management of funds and financial resources
        Destine them and apply them correctly to the productive sectors
    - - It is used to calculate the present value of the cash flows that are going to have in the future.
- - - - Required rate of return
        
        It is the minimum rate of return that must be required of an investment for it to be accepted.
    - - Risk
        
        It is measured by the variability of the possible returns around their average or expected value.
    - - you expect to incur a series of expenses and produce certain costs to obtain a series of future benefits.
        
        Basis for decision
        
        Profit maximization vs. investment maximization.
        Administration vs. shareholders
        Analysis of the company and its trend.
    - - is a tool that facilitates investment decision-making without the need for complex knowledge of economics, mathematics or statistics.
        
        The decision to borrow
        
        it is accepted as long as the project operationally obtains a rate of return greater than the cost of the debt.