CH 1 Goals and Activities of Financial Management
The field of finance
- Finance fits between economics and accounting.
- Economics provides picture of business environment
Consider consumers and producers
Accounting provides financial data
- Income statements, balance sheets, cash flow statements.
Financial managers need to know how to understand and interpret financial statements.
- CFO, often in charge of financial planning, accounting, and tax systems.
- Forward thinking and measuring business activity results.
- Credit Decisions
- Monitoring inventory
- Collect and distribute cash
Investments versus Corporate Finance
Investments.
- Investors use investment principles to value and bonds of companies
- Investors choose which to purchase
- Portfolio includes securities by multiple companies.
Corporate finance
- Principles used to determine which assets the firm should develop or buy.
- Corporate tax rate is at 21%
The Value of Studying Finance
Career Opportunites include
- Corporate financial officer, banker, stockbroker, financial analysist
Activities of Financial Management
Risk Return trade off determined to maximize market value.
- Influences operational side (Product A vs. B. )
- Influences financial mix
Forms Of Organization
The field of finance
- Finance fits between economics and accounting.
- Economics provides picture of business environment
Consider consumers and producers
Accounting provides financial data
- Income statements, balance sheets, cash flow statements.
Financial managers need to know how to understand and interpret financial statements.
- CFO, often in charge of financial planning, accounting, and tax systems.
- Forward thinking and measuring business activity results.
- Credit Decisions
- Monitoring inventory
- Collect and distribute cash
Investments versus Corporate Finance
Investments.
- Investors use investment principles to value and bonds of companies
- Investors choose which to purchase
- Portfolio includes securities by multiple companies.
Corporate finance
- Principles used to determine which assets the firm should develop or buy.
- Corporate tax rate is at 21%
The Value of Studying Finance
Career Opportunites include
- Corporate financial officer, banker, stockbroker, financial analysist
Activities of Financial Management
Risk Return trade off determined to maximize market value.
- Influences operational side (Product A vs. B. )
- Influences financial mix
Forms Of Organization
