Finance Functions

Finance Functions
The finance functions can be divided into three broad categories:
(1) Investment decision,
(2) Financing decision,
(3) Dividend decision.
In other words, the firm decides how much to invest in short-term and long-term assets and how to raise the required funds.

Shareholders’ Wealth Maximisation (SWM):  In making financial decisions, the financial manager should try to increase the value of the stake of the shareholder in the firm. This is referred to as the principle of Shareholders’ Wealth Maximisation (SWM).

Wealth:  Wealth is precisely defined as net present value and it accounts for time value of money and risk.

Agency Problem and Agency Costs: Shareholders and managers have the principal-agent relationship. In practice, there may arise conflict between the interests of shareholders and managers. This is referred to the agency problem and the associated costs are called agency costs. if any agency offer ownership rights  to the manager in the form of stock options, it will mitigate the agency costs.

Financial Manager:  The main duty of a financial manager is to raise capital from the capital markets. They should therefore well know about the functioning of capital markets to properly allocate capital to the competing firms and how security prices are determined in the capital markets.


Chief Financial Officer: A number of companies in India either have a finance director or a vice-president of finance as the Chief Financial Officer (CFO). Most companies have only one CFO. But a large company may have both a treasurer and a controller, who may or may not operate under the CFO.

Treasurer and Controller: The main function of a treasurer is to raise and manage company or firms funds. On the other hands it is the responsibility of the controller to look whether this fund are correctly applied or not.  

List of top MBA Schools in USA for the year 2017-2018 with tution fees

Sl. No.
Name of the Management College
City / State
Test  Required
 For admission
Tuition Fees per year in $ (approx)
1
Harvard University
Boston, MA
GMAT, GRE, IELTS, TOEFL, PTE
$63,675
2
University of Pennsylvania (Wharton)
Philadelphia, PA
GMAT, GRE, TOEFL, PTE
$67,516
3
University of Chicago (Booth) 

Chicago, IL
GMAT, GRE, IELTS, TOEFL, PTE
$66,540
4.
Massachusetts Institute of Technology (Sloan)
Cambridge, MA
GMAT, GRE
$67,938
5.
Northwestern University (Kellogg)
             

Evanston, IL
GMAT, GRE, IELTS, TOEFL
$66,462
6.
Stanford University
Stanford, CA
GMAT, GRE, IELTS, TOEFL, PTE
$66,540
7
University of California—Berkeley (Haas)

Berkeley, CA
GMAT, GRE, IELTS, TOEFL
$56,009
8
Dartmouth College (Tuck)

Hanover, NH
GMAT, GRE, IELTS, TOEFL, PTE
$66,390
9
Columbia University  

New York, NY
GMAT, GRE, IELTS, TOEFL, PTE
$68,792
10
Yale University
New Haven, CT
GMAT, GRE
$64,200
11
University of Michigan—Ann Arbor (Ross)
Ann Arbor, MI
GMAT, GRE, TOEFL, PTE
$59,350
12
Duke University (Fuqua)

Durham, NC
IELTS
$63,200
13
New York University (Stern)  

New York, NY
GMAT, GRE, IELTS, TOEFL
$66,588
14
University of Virginia (Darden)

Charlottesville, VA
GMAT, GRE, IELTS, TOEFL, PTE
$57,790
15
University of California—Los Angeles (Anderson)  

Los Angeles, CA
GMAT, GRE, IELTS, TOEFL
$52,272
16
Cornell University (Johnson)

Ithaca, NY
GMAT, GRE, IELTS, TOEFL
$61,584
17
University of Texas—Austin (McCombs)  

Austin, TX
GMAT, GRE, IELTS, TOEFL
$34,296
18
University of North Carolina—Chapel Hill (Kenan-Flagler)

Chapel Hill, NC
GMAT, GRE, IELTS, TOEFL, PTE
$40,015
19
Carnegie Mellon University (Tepper)  

Pittsburgh, PA
GMAT, GRE, IELTS, TOEFL
$61,440
20
Emory University (Goizueta)

Atlanta, GA
GMAT, GRE, IELTS, TOEFL, PTE
$57,000
21
Georgetown University (McDonough)

Washington, DC
GMAT, GRE, IELTS, TOEFL, PTE
$55,050
22
Indiana University (Kelley)

Bloomington, IN
GMAT, GRE, IELTS, TOEFL
$25,500
23
Washington University in St. Louis (Olin)
St. Louis, MO
GMAT, GRE, IELTS, TOEFL
$55,400
24
University of Southern California (Marshall)
Los Angeles, CA
GMAT, GRE, IELTS, TOEFL, PTE
$55,474
25
Arizona State University (Carey)
Tempe, AZ
GMAT, GRE, IELTS, TOEFL, PTE
$26,080
26
Vanderbilt University (Owen)
Nashville, TN
GMAT, GRE, IELTS, TOEFL, PTE
$51,900
27
Ohio State University (Fisher)
Columbus, OH
GMAT, GRE, IELTS, TOEFL
$30,120
28
University of Washington (Foster)

Seattle, WA
TOEFL
$31,335
29
Georgia Institute of Technology (Scheller)
Atlanta, GA
GMAT, GRE, TOEFL,
$28,896
30
Rice University (Jones)

Houston, TX
GMAT, GRE, IELTS, TOEFL, PTE
$53,000
31
University of Notre Dame (Mendoza)
Notre Dame, IN
GMAT, GRE, IELTS, TOEFL, PTE
$50,326
32
Temple University (Fox)
Philadelphia, PA
GMAT, GRE, IELTS, TOEFL, PTE
$31,293
33
University of Minnesota—Twin Cities (Carlson)
Minneapolis, MN
IELTS, TOEFL, PTE
$37,100
34
Brigham Young University (Marriott)

Provo, UT
GMAT, IELTS, TOEFL
$12,310
35
University of Wisconsin—Madison

Madison, WI 
IELTS, TOEFL, PTE
$15,894

Top 10 MBA Streams for Career

Master of Business Management, that MBA is a 2 year course in which students are made expert in all subjects in the management, with the s...