Impact of financial environment on financial management
Answers
Explanation:
The simple response is that well-developed, smoothly operating financial markets play an important role in contributing to the health and efficiency of an economy. There is a strong positive relationship between financial market development and economic growth.
Impact of financial environment on financial management
The financial environment is a major part of the economy. The financial environment includes the major players of the economy such as firms, investors and markets. The financial environment affects the economy and financial management. A good financial environment can be helpful for financial management. A good financial environment is essential for the development of a developed economy.
The financial environment of a company refers to all the financial institutions around that company and the financial market, which affects the overall functioning of the company. The management of the company is also influenced by the financial environment. The financial management of the company is governed by the financial environment. If there are any changes in the financial environment, financial management also tries to adapt itself accordingly, so that it can run according to the market and can make policies according to the time and situation.
For example, the arrival of new technology is the effect of the financial environment, so financial management has to change itself according to the technology.
Therefore, it is clear that the financial environment has a significant impact on the management of the company.
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