Presentatsioon Corporate Financial Management
The introduction of money into the system creates monetary as well as real
flows of goods and services.
Investment in a money economy
Investment involves resources being laid aside now to produce a return in the
future, for instance, today´s consumption is reduced in order to put resources
into building a factory and the creation of machine tools to produce goods in
later years.
In a modern, sophisticated economy there are largescale flows of investment
resources from the ultimate owners (individuals who make up households) to
the business sector. Even the profits of previous year´s endeavours retained
within the business belong to households they have merely permitted firms to
hold on to those resources for further investments on their behalf.
The role of the financial manager
Strategy
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