Principles of Finance Unit 1 – Introducing Finance Study Guide PDF – Sophia (2026)

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Principles of Finance Unit 1
| Introducing Finance Study
Guide PDF – Sophia




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Principles of Finance Unit 1 _ Introducing Finance Study Guide PDF – Sophia.pdf 2026-04-03

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Terms in this set (32)



What is Finance? The study of funds management and asset allocation over time.


Time The underlying driver behind all of finance.


Time Value of Money Money today is worth more than the same amount of money in the future.


Risk Making an investment does not guarantee a return. When a bank makes a
loan, they're not sure the debtor will pay it back.


Assets Something or someone of any value; economic resources that represent
value of ownership that can be converted into cash.


Debtor A person or firm that owes money, one in debt, or one who owes a debt.


What does it mean to Finance? To provide or obtain funding for a transaction or undertaking; to back; to
support.



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