Modern Financial Management Theories & Small Businesses
[ad_1] The following are some examples of modern financial management theories formulated on principles considered as ‘a set of fundamental tenets that form the basis for financial theory and decision-making in finance’ (Emery et al.1991). An attempt would be made to relate the principles behind these concepts to small businesses’ financial management. Agency Theory Agency theory deals with the people who own a business enterprise and all others who have interests in it, for example managers, banks, creditors, family members,…