finance topic 1

Front

What is Finance?

Back

The management of money.

Front

What are the three broad areas of Finance?

Back

Financial management, Investment, Financial markets and Institutions.

Front

What is the focus of this course?

Back

More on Financial Management.

Front

What are Financial Decisions?

Back

Investment Decisions and Financing Decisions.

Front

What is the goal of the firm?

Back

To create value for the firm’s owners (maximize shareholder wealth).

Front

What are the three basic issues addressed by the study of finance?

Back

1. What long-term investments should the firm undertake? 2. How should the firm raise money to fund these investments? 3. How to manage cash flows arising from day-to-day operations?

Front

What are the different legal forms of business organization?

Back

Sole Proprietorship, Partnership, Corporation/Companies, Hybrid.

Front

What is a Sole Proprietorship?

Back

A business owned by an individual with unlimited liability.

Front

What is a Partnership?

Back

Two or more persons come together as co-owners.

Front

What is a Corporation?

Back

Legally functions separate and apart from its owners.