Question
Which of the following statements regarding financial management are correct? Financial management , as a subject of finance, builds upon the disciplines of __ marketing and accounting economics, marketing and accounting economics and accounting economics and marketing
Solution
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(287 Votes)
Liliana
Veteran ยท Tutor for 9 years
Answer
The correct answer is **economics and accounting**.Here's why:* **Economics:** Financial management relies heavily on economic principles like time value of money, cost-benefit analysis, risk and return, and market efficiency. These concepts are fundamental to making sound financial decisions.* **Accounting:** Accounting provides the financial data (e.g., balance sheets, income statements, cash flow statements) that financial managers use to analyze a company's performance and make decisions about investments, financing, and dividends. It provides the language and framework for tracking financial transactions.* **Marketing:** While marketing decisions certainly impact a company's finances, marketing itself isn't a core foundational discipline for financial management. Marketing focuses on understanding and influencing customer behavior, while financial management focuses on managing the financial resources of the organization.