All financial management activities occur in an environment rife with with uncertainty due to various environmental factors that are very dynamic and the effects of which may be challenging to quantify. Although such uncertainties have always typified business environment, they still complicate organizations financial resources management. There has been suggestion that a focus on corporate governance and King IV principles may aid Financial managers in the decision and activities involved in financial management. Accordingly, you have been tasked to answer the question: is there a relationship between corporate governance and financial management decisions?

1) describe and explain the financial management environment in which financial management activities takes place. (50marks)

2) the uncertainty that the financial management environment presents to financial managers in their quest to maximize shareholder value. (50 marks)