International accounting and finance Essay Example | Topics and Well Written Essays - 4000 words

International accounting and finance - Essay ExampleInternational companies play a huge role in the global company and can have a powerful influence on the prospects and performance of several economies, especially those that atomic number 18 directly influenced by its business operations and decisions (Ray Whittington, 2007).Irrespective of their nature of operation, both domestic as well as international companies rely on the efficacious management of their financial resources, wherein the financial management of the company can be defined as the management of the financial resources of a business organization so as to guide it towards the achievement of its financial objectives (Arthur Andersen, 1977). In this aspect, there are a few aspects, which are entirely applicable irrespective of the area or extent of operation of the company. With a view to improving the prospects of commercial business as the basis of the structure for the organization, the key objectives of managing t he finances of the firm are to earlier generate revenue and profits for the business apart from ensuring the liquidity levels within the business. In addition, it is also necessary for financial management to provide the required strategies to champion generate a healthy return on investment by assisting in identifying and mitigating all the risks involved in conducting the business by putting in a certain set of resources. In this respect, financial management is achieved for any firm through three main sections.Planning in order to investment firm business operations, the management needs to be sure of the amount of funding available and the sums required to aid the needs of the business. Funding is required to invest in the company, its infrastructure, human resources as well as assist in the sales made over the credit (Barry Epstein, 2001). For longer terms, funding is also required to elicit the levels of productivity