Personal statement Example | Topics and Well Written Essays - 500 words - 51

Personal Statement Example The knowledge obtained by combining management and financial study is essential as it facilitates the development of strategic decisions. At the same time, the two disciplines ensure effective adoption and implementation of policies and plans aimed at achieving the organisations objectives. Asset allocation is one of the fields where management and financial strategy are often intertwined. This investment strategy involves creating a balance between risk and reward by adjusting the percentage of an asset. Therefore, critical thinking that is a skill obtained in management is significant in determining business’s risk tolerance, goals and investment time frame (Pandey 2009:70). Moreover, the external environment is often bombarded with issues such as inflation. Inflation is a current issue that can cause significant distortions in the economy. A market that is experiencing inflation discourages savings, reduces economic growth and can discourage investors. Management cannot rely on their knowledge regarding the market. Therefore, management would be expected to conduct research on the environmental forces that would affect its resources and thus inhibit the achievement of the set objectives. When it comes to inflation, management is expected to utilise its financ ial tools so as to come up with an effective financial strategy that would ensure the firm’s success. Studying finance is important as it enables a manager to ensure proper allocation of money. The business operates in a financial environment in which there are a constant inflow and outflow of money. Without proper financial management, a firm would be unable to account properly for the financial resources available. For example, if a small business took a small loan and used it to finance its fixed assets. The short loan is a liability that has to be paid back within one year. However, the firm may find it difficult to sell the assets within one year. The company may find itself unable to pay