Essay Financial Management Challenges
1125 WordsNov 18th, 20135 Pages
Financial Management Challenges
BUS 650 Managerial Finance
Prof. Kevin Kuznia
July 29, 2013
To understand the challenges that face a financial manager today it is important to understand the general characteristics of market structures and the impact of market liquidity, competitiveness, and efficiency on financial managers. Clarifying market structures will show the basic constructs that financial managers work under. With the basic understanding of market structures and how they influence financial managers or how financial managers influence their given market structures we will identify two problems that are faced in current markets chosen from two Proquest articles, the first problem discussed will be…show more content…
A monopoly is recognized by one company with no competition with the company setting the price. Our text points out an important effect of markets in that price is set, this is important for financial managers (Byrd, Hickman, & McPherson, 2013).
Now that we have a basic understanding of market structures we can understand how they influence price and financial managers. The price of a product will be derived from what a buyer is willing to pay for that product keeping in mind a complete cycle for everyone involved allowing for ongoing, continuous buying, selling, and consumption which keeps the economy working. The ease in which an organization can turn assets (those that are bought and sold) into cash is known as liquidity. A financial manager must take into consideration the kind of market structure they are in and with that the price of entering the market, the control of price and possible impact of other organizations involved in the same market. The impact of the other organizations in both price and the quantity of products produced in the same market is known as competition. The ease in which the market structure operates with the correct ratios of supply, demand, and price is the market efficiency.
One problem faced by financial managers today is the lapse in the communication process between market, sales, and financial managers according to Dr. Weissbrich and Prof. Krohmer in an article they wrote entitled Managerial-Challenges
Financial Problems Become Marital Problems Essay
2143 Words9 Pages
According to financial expert Larry Burkett, eighty-five to ninety percent of surveyed couples claim finances were the main reason for their divorce (Rainey 19). Soaring over adultery, abuse, and incompatibility, financial problems are disintegrating marriages of all age groups in America. The Time magazine article, “Will the Market Kill Your Marriage?” contains three theories from different standpoints, offering explanations for dissolution caused by finances. The therapist theory claims that marital issues stem from hopelessness caused by financial stress. Secondly, the marriage counselor theory argues couples without former communication about money crumple when the funds start to fall. Lastly, the lawyer theory colorfully concludes…show more content…
Phil Garver, husband of forty-six years to Betty Garver, spoke about their journey together and the effect finances have had on their relationship. In the early years of their marriage, Garver was drafted to Vietnam while Betty was in nursing school in Denver, Colorado. Garver sent every dime of his monthly ninety dollar salary back home to Betty, while gathering up enough change cutting peoples’ hair during the week to call her on Friday nights. “We had some tough times,” Garver says, but “those are the moments that brought us together. If we can survive that we can survive anything.” Evidently, the very problem that is breaking apart hundreds of thousands of marriages in America has the same power to bring couples together. Today, couples are letting their marriage slip through the cracks, disregarding the possibility of saving their marriage by combining their checking accounts, establishing a practical, balanced budget, and planning and communicating.
One of the biggest problems for couples is coordinating their spending and saving habits to maintain a stable financial status. Some couples have chosen to keep separate checking accounts for various reasons, such as tracking convenience, dividing responsibilities, and independence. This can work for some couples, but the important factor is unity. Unified decisions make a unified couple. Some couples can make unified financial decisions while having