This document outlines learning goals and provides an overview of finance concepts including the definition of finance, major areas and opportunities in finance like financial services and managerial finance. It discusses the managerial finance function and its relationship to economics and accounting. It also covers topics like the goal of the firm, corporate governance, ethics, and financial institutions and markets.
This document provides an overview of managerial finance. It defines finance and describes the major areas of financial services and managerial finance. It explains the goals of a firm as maximizing shareholder wealth and discusses corporate governance, ethics, and agency issues. It also outlines the role of financial institutions and markets and describes the money and capital markets. The primary activities of a financial manager are also summarized.
This document provides an overview and introduction to managerial finance. It defines finance and identifies its three main areas as financial markets, financial services, and managerial finance. It also outlines seven key learning goals, such as defining finance and describing the role of the financial manager. The document discusses different business organizations, the relationship between finance, economics, and accounting. It emphasizes that the goal of a firm is to maximize shareholder wealth and examines ideas like EVA and stakeholder theory. The agency problem between managers and owners is also introduced.
The document discusses the course of studies for finance which includes capital budgeting, capital structure, dividend policy, and working capital decisions. It lists textbooks on corporate finance and principles of managerial finance. It provides an overview of finance functions in a corporate organization including capital budgeting, financing mix, project evaluation, and maximizing shareholder value. The objective of financial management is to provide an optimal framework for financial decision making.
This document provides an overview of Chapter 1 from the textbook "Principles of Managerial Finance". The chapter introduces the field of finance and explores career opportunities. It describes different business organizations and the relationship between parties in a corporation. It defines the managerial finance function and differentiates it from economics and accounting. It summarizes the key activities of financial managers as financial analysis and planning, investment decisions, and financing decisions. It discusses the goals of maximizing shareholder wealth and preserving stakeholder wealth through ethics. It also covers the agency problem between managers and owners.
Define finance and the managerial finance function. Describe the goal of the firm, and explain why maximizing the value
of the firm is an appropriate goal for a business. Describe the nature of the principal–agent relationship
between the owners and managers of a corporation, and
explain how various corporate governance mechanisms attempt
to manage agency problems.
An Introduction to Managerial Finance prepared for the Graduate School of Business at the University of New England. Slides prepared by Dr Subba Reddy Yarram.
An overview of managerial finance-IBF-CH#1Junaid hancock
This document provides an overview of managerial finance. It discusses what finance entails, the general areas of finance, and how finance fits within the organizational structure of a firm. It also covers alternative forms of business organization like proprietorships, partnerships, and corporations. The document discusses how corporations aim to maximize shareholder wealth through capital structure, capital budgeting, and dividend policy decisions. It addresses agency relationships between shareholders and managers and factors that can influence stock price. The document concludes with brief discussions of business ethics and reasons why firms operate internationally.
This document provides an overview of managerial finance. It defines finance and describes the role of the financial manager. The financial manager's responsibilities include raising capital, investing funds to earn a profit, and deciding whether to reinvest profits or distribute them to investors. The document also outlines various career opportunities in finance, different forms of business organization, and the goal of maximizing shareholder wealth. It discusses the relationship between managerial finance, economics, and accounting.
This document provides an overview of managerial finance. It defines finance and describes the major areas of financial services and managerial finance. It explains the goals of a firm as maximizing shareholder wealth and discusses corporate governance, ethics, and agency issues. It also outlines the role of financial institutions and markets and describes the money and capital markets. The primary activities of a financial manager are also summarized.
This document provides an overview and introduction to managerial finance. It defines finance and identifies its three main areas as financial markets, financial services, and managerial finance. It also outlines seven key learning goals, such as defining finance and describing the role of the financial manager. The document discusses different business organizations, the relationship between finance, economics, and accounting. It emphasizes that the goal of a firm is to maximize shareholder wealth and examines ideas like EVA and stakeholder theory. The agency problem between managers and owners is also introduced.
The document discusses the course of studies for finance which includes capital budgeting, capital structure, dividend policy, and working capital decisions. It lists textbooks on corporate finance and principles of managerial finance. It provides an overview of finance functions in a corporate organization including capital budgeting, financing mix, project evaluation, and maximizing shareholder value. The objective of financial management is to provide an optimal framework for financial decision making.
This document provides an overview of Chapter 1 from the textbook "Principles of Managerial Finance". The chapter introduces the field of finance and explores career opportunities. It describes different business organizations and the relationship between parties in a corporation. It defines the managerial finance function and differentiates it from economics and accounting. It summarizes the key activities of financial managers as financial analysis and planning, investment decisions, and financing decisions. It discusses the goals of maximizing shareholder wealth and preserving stakeholder wealth through ethics. It also covers the agency problem between managers and owners.
Define finance and the managerial finance function. Describe the goal of the firm, and explain why maximizing the value
of the firm is an appropriate goal for a business. Describe the nature of the principal–agent relationship
between the owners and managers of a corporation, and
explain how various corporate governance mechanisms attempt
to manage agency problems.
An Introduction to Managerial Finance prepared for the Graduate School of Business at the University of New England. Slides prepared by Dr Subba Reddy Yarram.
An overview of managerial finance-IBF-CH#1Junaid hancock
This document provides an overview of managerial finance. It discusses what finance entails, the general areas of finance, and how finance fits within the organizational structure of a firm. It also covers alternative forms of business organization like proprietorships, partnerships, and corporations. The document discusses how corporations aim to maximize shareholder wealth through capital structure, capital budgeting, and dividend policy decisions. It addresses agency relationships between shareholders and managers and factors that can influence stock price. The document concludes with brief discussions of business ethics and reasons why firms operate internationally.
This document provides an overview of managerial finance. It defines finance and describes the role of the financial manager. The financial manager's responsibilities include raising capital, investing funds to earn a profit, and deciding whether to reinvest profits or distribute them to investors. The document also outlines various career opportunities in finance, different forms of business organization, and the goal of maximizing shareholder wealth. It discusses the relationship between managerial finance, economics, and accounting.
The governance system that a company adopts is not independent of its environment. Instead, it is shaped by a variety of factors inherent to the business setting.
This Quick Guide explains the factors that shape governance systems around the world. It also provides an overview of governance systems in selected countries.
It answers the questions:
• Why do governance systems vary?
• How important are capital markets?
• What is the impact of legal tradition?
• Why do accounting standards matter?
• How do societal values shape governance?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
This document provides an overview of the main areas of finance, including investments, financial markets, and financial management. It discusses key concepts such as financial assets, the roles of the stock and bond markets, and how corporations raise money. The three main areas of finance - investments, financial markets, and financial management - are interrelated but separate fields. Financial management involves decisions about raising capital, spending money, and overseeing operations. The goals of management can conflict with different stakeholder groups like employees and stockholders.
Introduction ot Mangerial Finance - Chapter 2 by: Scott Besley & Eugene BrighamKenji Silavi
This document discusses financial statement analysis. It provides an overview of key financial statements including the balance sheet, income statement, statement of cash flows, and statement of retained earnings. It then analyzes these statements for a company called Unilate Textiles, calculating various financial ratios to evaluate Unilate's liquidity, asset management, debt management, profitability, and market value. The DuPont analysis is also explained as a way to analyze return on assets and return on equity. Finally, potential problems with financial ratio analysis are discussed.
Corporate Governance Reforms Post Global Financial CrisisSanjay Uppal
This document discusses corporate governance in financial services following the global financial crisis. It begins by outlining the importance of corporate governance and defines it as the procedures and processes by which an organization is directed and controlled. It then discusses key principles of corporate governance for banks according to the Basel Committee on Banking Supervision, including setting objectives, risk management, and protecting depositors. The document notes that sound corporate governance in banks can promote economic development by increasing access to finance and improving operational performance. However, poorly governed banks can damage the economy. While boards and senior management have primary responsibility for governance, other stakeholders like regulators, shareholders, and governments also play important roles. The document reviews key events in banking history over the 20th century and
Alex silva the importance of good governance - corporate governance in mf b...Daniel Kohan
The document discusses reasons why microfinance institutions fail and the importance of good governance to prevent failures. It identifies some common causes of failure as loose internal controls, excessive growth, poor market understanding, mission drift, fraud, and government intervention. Good governance is defined as the processes, customs and regulations that guide an organization. The key responsibilities of boards are identified as determining mission and strategy, overseeing management, ensuring controls, and evaluating performance. The document emphasizes that boards must see risk management as their responsibility and ensure it is integrated into all decision-making. Directors are advised to take an active role in understanding all risks faced by the organization.
Financial management concerns the acquisition, financing, and management of a firm's assets to maximize shareholder wealth. It involves three key decisions: investment decisions about what assets to acquire and invest in; financing decisions about how to finance those assets; and asset management decisions about efficiently managing existing assets. The goal of financial management is to maximize shareholder value by increasing the share price. While alternative goals like profit or earnings per share maximization are imperfect, shareholder wealth maximization properly accounts for factors like risk, timing of returns, and dividend policy. In the modern corporation, management acts as an agent for shareholders.
Corporate governance is important for companies to protect shareholder interests and manage risks. It involves transparency, accountability, and oversight between key stakeholders like shareholders, management, and boards of directors. Not applying effective governance can lead to financial failures, loss of shareholder rights, and lack of transparency deterring investment. Risks include mismanagement, abuse of power, loss of foreign investment, and withdrawal of capital. Governance aims to standardize responsibilities and achieve fairness, efficiency, and optimal resource use through transparency and accountability.
The document discusses the business and financial environments that financial managers operate within. It covers four basic forms of business organization: sole proprietorships, partnerships, corporations, and limited liability companies. It then discusses risk management, including defining risk, types of risk, and the three steps of risk management: identification, assessment, and treatment. Finally, it outlines the financial environment and key components like financial markets, intermediaries, and brokers.
Short presentation on 'internal controls for the class IPOL 8530 'The Finance Function' in Social Change Organizations'. This class is part of the Master of Public Administration (MPA) program in the Graduate School of International Policy & Management at the Monterey Institute of International Studies (MIIS). Presentation created by Alfredo Ortiz Aragón, adjunct professor.
The document summarizes Chapter 1 of a financial management textbook. It introduces key concepts such as the goal of the firm being maximization of shareholder wealth. It describes different forms of business organization like sole proprietorships, partnerships, and corporations. Corporations are identified as the most logical choice for large or growing businesses due to advantages like ease of raising capital and limited liability. The chapter also outlines 10 principles that form the foundations of financial management, such as the risk-return tradeoff and time value of money.
This document provides an overview and introduction to key concepts in corporate finance. It discusses the main tasks of corporate finance including capital budgeting, capital structure, and working capital management. It also covers the goals of financial management, including maximizing shareholder value. Agency problems that can arise between managers and shareholders are explained. The roles of the CFO, treasurer, and controller are outlined. Ethical considerations and corporate governance mechanisms are also summarized.
Understand the role that financial institutions play in managerial
finance. Contrast the functions of financial institutions and financial markets.
Describe the differences between the capital markets and the
money markets.Discuss business taxes and their importance in financial decisions.
HIH Insurance was founded in 1968 and grew rapidly through acquisitions in the 1990s. However, in early 2001 it collapsed with $5 billion in losses due to aggressive expansion, underpricing policies, and inadequate reserves. The collapse had massive impacts and a royal commission found flaws in HIH's governance, including a dominant CEO, lack of independence among directors, and inadequate risk management.
Internal and external institutions and influences of corporateGrace Fatima Abelida
Corporate governance refers to the mechanisms, relations, and processes by which a corporation is controlled and is directed. It involves balancing the many interests of the stakeholders of a corporation. Thus, it is important to know and determine what are the internal and external institutions and influences of a corporate governance.
1. The document discusses different topics in managerial finance including the definition of finance, legal forms of business organization, the goal of firms, stakeholders, business ethics, and the relationship between finance, economics, and accounting.
2. It describes sole proprietorships, partnerships, and corporations as common legal forms of business and compares their strengths and weaknesses.
3. The document notes that profit maximization may not always lead to the highest share price when considering timing of cash flows, risk, and cash available to stockholders. Stakeholders other than shareholders are also important to consider.
Corporate finance is the area of finance dealing with the sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to maximize shareholder value. Although it is in principle different from managerial finance which studies the financial management of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.
Corporate governance involves the processes, customs, policies, laws, and institutions affecting how a corporation is directed, administered, or controlled. It establishes the framework for accountability to stakeholders. Following several major corporate scandals, new laws were passed in the United States to strengthen shareholder rights, increase transparency and disclosure requirements, and place more oversight responsibilities on boards of directors. The United States corporate governance system emphasizes shareholder primacy through a unitary board structure with oversight of auditing and compensation committees.
This document provides an overview of corporate governance. It defines corporate governance as the techniques by which companies are directed and managed, balancing individual, societal, economic, and social goals. Good corporate governance ensures corporate success, economic growth, and maintains investor confidence. The principles of corporate governance include sustainable stakeholder development, effective wealth management, social responsibility, and compliance with law and ethics. The key pillars are accountability, fairness, transparency, and independence. The document also discusses various theories of corporate governance like agency theory and stakeholder theory. It covers topics such as credit ratings, insider trading, whistleblowing, and the role of credit rating agencies in India.
This chapter introduces key concepts in corporate finance. It discusses the role of the financial manager in making decisions regarding capital budgeting, capital structure, and working capital management. It also outlines the different forms of business organization including sole proprietorships, partnerships, and corporations. The chapter notes that the goal of financial management is to maximize the value of the company for shareholders but that conflicts can arise between shareholders and managers. It defines agency problems and how they are managed through compensation structures and corporate control.
The document provides an overview of principles of finance, including definitions of finance and business finance. It discusses the key functions of a finance manager, which include investment decisions, financing decisions, and dividend decisions. Investment decisions involve allocating funds to long-term assets, financing decisions involve determining the optimal debt-to-equity mix, and dividend decisions involve determining the appropriate payout ratio. The document also outlines various internal and external factors that influence financial decisions and lists some principles of business finance such as risk and return and time value of money.
This document provides an overview of key concepts in managerial finance. It defines finance and describes the major areas of financial services and managerial finance. It outlines the primary activities of financial managers, including maximizing shareholder wealth. The document discusses the relationship between finance and accounting and economics. It also covers topics such as legal business structures, corporate governance, ethics, and the role of financial institutions.
The governance system that a company adopts is not independent of its environment. Instead, it is shaped by a variety of factors inherent to the business setting.
This Quick Guide explains the factors that shape governance systems around the world. It also provides an overview of governance systems in selected countries.
It answers the questions:
• Why do governance systems vary?
• How important are capital markets?
• What is the impact of legal tradition?
• Why do accounting standards matter?
• How do societal values shape governance?
For an expanded discussion, see Corporate Governance Matters: A Closer Look at Organizational Choices and Their Consequences (Second Edition) by David Larcker and Brian Tayan (2015): http://www.gsb.stanford.edu/faculty-research/books/corporate-governance-matters-closer-look-organizational-choices
Buy This Book: http://www.ftpress.com/store/corporate-governance-matters-a-closer-look-at-organizational-9780134031569
For permissions to use this material, please contact: E: corpgovernance@gsb.stanford.edu
Copyright 2015 by David F. Larcker and Brian Tayan. All rights reserved.
This document provides an overview of the main areas of finance, including investments, financial markets, and financial management. It discusses key concepts such as financial assets, the roles of the stock and bond markets, and how corporations raise money. The three main areas of finance - investments, financial markets, and financial management - are interrelated but separate fields. Financial management involves decisions about raising capital, spending money, and overseeing operations. The goals of management can conflict with different stakeholder groups like employees and stockholders.
Introduction ot Mangerial Finance - Chapter 2 by: Scott Besley & Eugene BrighamKenji Silavi
This document discusses financial statement analysis. It provides an overview of key financial statements including the balance sheet, income statement, statement of cash flows, and statement of retained earnings. It then analyzes these statements for a company called Unilate Textiles, calculating various financial ratios to evaluate Unilate's liquidity, asset management, debt management, profitability, and market value. The DuPont analysis is also explained as a way to analyze return on assets and return on equity. Finally, potential problems with financial ratio analysis are discussed.
Corporate Governance Reforms Post Global Financial CrisisSanjay Uppal
This document discusses corporate governance in financial services following the global financial crisis. It begins by outlining the importance of corporate governance and defines it as the procedures and processes by which an organization is directed and controlled. It then discusses key principles of corporate governance for banks according to the Basel Committee on Banking Supervision, including setting objectives, risk management, and protecting depositors. The document notes that sound corporate governance in banks can promote economic development by increasing access to finance and improving operational performance. However, poorly governed banks can damage the economy. While boards and senior management have primary responsibility for governance, other stakeholders like regulators, shareholders, and governments also play important roles. The document reviews key events in banking history over the 20th century and
Alex silva the importance of good governance - corporate governance in mf b...Daniel Kohan
The document discusses reasons why microfinance institutions fail and the importance of good governance to prevent failures. It identifies some common causes of failure as loose internal controls, excessive growth, poor market understanding, mission drift, fraud, and government intervention. Good governance is defined as the processes, customs and regulations that guide an organization. The key responsibilities of boards are identified as determining mission and strategy, overseeing management, ensuring controls, and evaluating performance. The document emphasizes that boards must see risk management as their responsibility and ensure it is integrated into all decision-making. Directors are advised to take an active role in understanding all risks faced by the organization.
Financial management concerns the acquisition, financing, and management of a firm's assets to maximize shareholder wealth. It involves three key decisions: investment decisions about what assets to acquire and invest in; financing decisions about how to finance those assets; and asset management decisions about efficiently managing existing assets. The goal of financial management is to maximize shareholder value by increasing the share price. While alternative goals like profit or earnings per share maximization are imperfect, shareholder wealth maximization properly accounts for factors like risk, timing of returns, and dividend policy. In the modern corporation, management acts as an agent for shareholders.
Corporate governance is important for companies to protect shareholder interests and manage risks. It involves transparency, accountability, and oversight between key stakeholders like shareholders, management, and boards of directors. Not applying effective governance can lead to financial failures, loss of shareholder rights, and lack of transparency deterring investment. Risks include mismanagement, abuse of power, loss of foreign investment, and withdrawal of capital. Governance aims to standardize responsibilities and achieve fairness, efficiency, and optimal resource use through transparency and accountability.
The document discusses the business and financial environments that financial managers operate within. It covers four basic forms of business organization: sole proprietorships, partnerships, corporations, and limited liability companies. It then discusses risk management, including defining risk, types of risk, and the three steps of risk management: identification, assessment, and treatment. Finally, it outlines the financial environment and key components like financial markets, intermediaries, and brokers.
Short presentation on 'internal controls for the class IPOL 8530 'The Finance Function' in Social Change Organizations'. This class is part of the Master of Public Administration (MPA) program in the Graduate School of International Policy & Management at the Monterey Institute of International Studies (MIIS). Presentation created by Alfredo Ortiz Aragón, adjunct professor.
The document summarizes Chapter 1 of a financial management textbook. It introduces key concepts such as the goal of the firm being maximization of shareholder wealth. It describes different forms of business organization like sole proprietorships, partnerships, and corporations. Corporations are identified as the most logical choice for large or growing businesses due to advantages like ease of raising capital and limited liability. The chapter also outlines 10 principles that form the foundations of financial management, such as the risk-return tradeoff and time value of money.
This document provides an overview and introduction to key concepts in corporate finance. It discusses the main tasks of corporate finance including capital budgeting, capital structure, and working capital management. It also covers the goals of financial management, including maximizing shareholder value. Agency problems that can arise between managers and shareholders are explained. The roles of the CFO, treasurer, and controller are outlined. Ethical considerations and corporate governance mechanisms are also summarized.
Understand the role that financial institutions play in managerial
finance. Contrast the functions of financial institutions and financial markets.
Describe the differences between the capital markets and the
money markets.Discuss business taxes and their importance in financial decisions.
HIH Insurance was founded in 1968 and grew rapidly through acquisitions in the 1990s. However, in early 2001 it collapsed with $5 billion in losses due to aggressive expansion, underpricing policies, and inadequate reserves. The collapse had massive impacts and a royal commission found flaws in HIH's governance, including a dominant CEO, lack of independence among directors, and inadequate risk management.
Internal and external institutions and influences of corporateGrace Fatima Abelida
Corporate governance refers to the mechanisms, relations, and processes by which a corporation is controlled and is directed. It involves balancing the many interests of the stakeholders of a corporation. Thus, it is important to know and determine what are the internal and external institutions and influences of a corporate governance.
1. The document discusses different topics in managerial finance including the definition of finance, legal forms of business organization, the goal of firms, stakeholders, business ethics, and the relationship between finance, economics, and accounting.
2. It describes sole proprietorships, partnerships, and corporations as common legal forms of business and compares their strengths and weaknesses.
3. The document notes that profit maximization may not always lead to the highest share price when considering timing of cash flows, risk, and cash available to stockholders. Stakeholders other than shareholders are also important to consider.
Corporate finance is the area of finance dealing with the sources of funding and the capital structure of corporations and the actions that managers take to increase the value of the firm to the shareholders, as well as the tools and analysis used to allocate financial resources. The primary goal of corporate finance is to maximize shareholder value. Although it is in principle different from managerial finance which studies the financial management of all firms, rather than corporations alone, the main concepts in the study of corporate finance are applicable to the financial problems of all kinds of firms.
Corporate governance involves the processes, customs, policies, laws, and institutions affecting how a corporation is directed, administered, or controlled. It establishes the framework for accountability to stakeholders. Following several major corporate scandals, new laws were passed in the United States to strengthen shareholder rights, increase transparency and disclosure requirements, and place more oversight responsibilities on boards of directors. The United States corporate governance system emphasizes shareholder primacy through a unitary board structure with oversight of auditing and compensation committees.
This document provides an overview of corporate governance. It defines corporate governance as the techniques by which companies are directed and managed, balancing individual, societal, economic, and social goals. Good corporate governance ensures corporate success, economic growth, and maintains investor confidence. The principles of corporate governance include sustainable stakeholder development, effective wealth management, social responsibility, and compliance with law and ethics. The key pillars are accountability, fairness, transparency, and independence. The document also discusses various theories of corporate governance like agency theory and stakeholder theory. It covers topics such as credit ratings, insider trading, whistleblowing, and the role of credit rating agencies in India.
This chapter introduces key concepts in corporate finance. It discusses the role of the financial manager in making decisions regarding capital budgeting, capital structure, and working capital management. It also outlines the different forms of business organization including sole proprietorships, partnerships, and corporations. The chapter notes that the goal of financial management is to maximize the value of the company for shareholders but that conflicts can arise between shareholders and managers. It defines agency problems and how they are managed through compensation structures and corporate control.
The document provides an overview of principles of finance, including definitions of finance and business finance. It discusses the key functions of a finance manager, which include investment decisions, financing decisions, and dividend decisions. Investment decisions involve allocating funds to long-term assets, financing decisions involve determining the optimal debt-to-equity mix, and dividend decisions involve determining the appropriate payout ratio. The document also outlines various internal and external factors that influence financial decisions and lists some principles of business finance such as risk and return and time value of money.
This document provides an overview of key concepts in managerial finance. It defines finance and describes the major areas of financial services and managerial finance. It outlines the primary activities of financial managers, including maximizing shareholder wealth. The document discusses the relationship between finance and accounting and economics. It also covers topics such as legal business structures, corporate governance, ethics, and the role of financial institutions.
Introduction to Business Finance and its importance.sadiaumarahmed
This document provides an overview of financial management. It defines financial management as concerned with acquisition, financing, and management of assets to achieve some overall goal. The goal of financial management is to maximize shareholder wealth by making optimal investment, financing, and asset management decisions. These decisions impact the market price of the firm's stock. The document also discusses the separation of ownership and management in modern corporations and the need for governance and incentives to address potential agency problems.
This document provides an overview of managerial finance. It defines finance at both the macro and micro levels. At the macro level, finance studies financial institutions and markets, while at the micro level it focuses on financial planning, asset management, and fundraising for businesses. The document outlines key areas of finance like financial markets, services, and managerial finance. It also discusses forms of business organization, the roles of a CFO and controller, and the relationship between finance and economics/accounting. Overall, the document introduces many fundamental concepts in finance.
Defination of Financial Management
Major Areas
Corporates
Corporate Structure
Corporate Objectives & Strategy
Factors influencing Corporate Objectives
Primary vs Secondary Objectives
Strategies(Corporate) / Tactical (Functional)
Role Of a Financial Manager
The document discusses the role of financial management in business. It covers three key areas: (1) investment decisions about what assets to acquire and invest in; (2) financing decisions around obtaining capital and managing debt versus equity; and (3) asset management decisions about efficient use of existing assets. The overarching goal of financial management is to maximize shareholder wealth by increasing the long-term share price. This requires balancing risks and returns across investment, financing, and asset management decisions.
1) The chapter introduces managerial finance and describes its relationship to economics and accounting. It defines finance and outlines the major areas including financial services and managerial finance.
2) It explains the key functions of the financial manager including maximizing shareholder wealth and outlines the goals and responsibilities of corporate governance.
3) It differentiates between individual and institutional investors and their roles in corporate governance.
This document provides an overview of managerial finance. It defines finance and the role of the financial manager. It describes the legal forms of business organization and explains that the goal of a firm is to maximize shareholder wealth. It discusses how the managerial finance function relates to economics and accounting. It also covers topics like agency problems between owners and managers, and how corporate governance mechanisms aim to manage these issues.
1 the role of managerial finance(modified 4)Ahmed Elgazzar
1-The Role of Managerial Finance(Modified 4)
2-Time value of money(modified 1)
3-Capital Budgeting(Modified 1) [Repaired]
4-Stock Valuation(modified 1)
MBA Assignments
This document provides an overview of managerial finance. It defines key terms like finance, financial management, and discusses the goal of the firm as maximizing shareholder wealth. It also explores the relationship between finance and other areas like economics, accounting, and corporate governance. Specific topics covered include the agency problem between managers and shareholders, and how compensation plans and government regulations help address this issue.
This document provides an overview of managerial finance. It defines key terms like finance, financial management, and discusses the goal of the firm as maximizing shareholder wealth. It also explores the relationship between finance and other areas like economics, accounting, and corporate governance. Specific topics covered include the agency problem between managers and shareholders, and how compensation plans and government regulations help address this issue.
The document discusses the role of managerial finance. It defines finance and outlines career opportunities in both financial services and managerial finance. Managerial finance concerns the duties of a financial manager in a business, including actively managing financial affairs. The document also discusses legal forms of business organization like sole proprietorships, partnerships, and corporations. It emphasizes that the primary goal of finance is to maximize shareholder wealth by increasing share price through actions that benefit shareholders.
CH (1) - The role of corporate finance .pdfYassinDyab2
This document discusses the role of managerial finance. It defines finance and describes career opportunities in both financial services and managerial finance. It also covers the goal of the firm as maximizing shareholder wealth, legal forms of business organization, and the relationship between managerial finance and economics/accounting. Finally, it addresses corporate governance and agency issues, describing how governance mechanisms and compensation plans aim to align manager and shareholder interests.
Corporate finance deals with how corporations raise funding, structure their capital, increase shareholder value, and allocate financial resources. The primary goals of corporate finance are to maximize shareholder value and effectively invest capital budgeting funds while maintaining adequate working capital. A corporate financial manager's roles include making decisions around raising capital, investing funds, and distributing dividends to optimize allocation of scarce resources and increase shareholder value.
This document provides an overview of managerial finance. It defines finance and describes the goals of the firm and maximizing shareholder wealth. It outlines various career opportunities in finance and legal forms of business organization. It discusses corporate governance and the principal-agent problem between owners and managers. It also describes the managerial finance function and its relationships to economics and accounting. The overall document serves as an introductory chapter on the role and scope of managerial finance.
3.3. Startups in Ethiopia
Ethiopia does not have a sufficient financing system for entrepreneurs, but in the past ten years, many young people have become more inclined to start their own ventures. It has been ensured that startups are asset-light and solve an end-user pain point, making them attractive to the investing community, but there is still a perception challenge with creditworthiness. Proponents of start-up business models argue that traditional parameters to gauge a business include visibility of revenues, profitability, and gross margins, a lack of understanding of a business model, and time to reap desired results. Losses of start-ups founded on viable ideas are largely due to a lack of sufficient marketing, employee expenses, and expenses related to technology, and are largely funded by equity. Financing is required for growth. Banks and other funding entities stay away from funding start-ups due to a lack of understanding and risk aversion.
Ethiopia's startup ecosystem is ranked 105th globally, with Addis Ababa being the highest-ranked city. The StartupBlink Global Startup Ecosystem Map shows 12 fintech companies, 11 software and data startups, and 7 foodtech businesses. In 2020, Ethiopian startups raised USD 2.25 million in announced investment, up from USD 0.65 million in 2019. The figure excludes grants, prize money, and non-equity assistance, according to the Baobab Network, a technology accelerator built for Africa. For comparison, financial technology firms raised more than USD 8 million in 2021. On the other hand, Disrupt Africa’s African Tech Startup Funding Report 2020 announced that Addis Ababa is the only Ethiopian city among the top 500 and in the global top 1000 startup-friendly cities.
Despite a series of reforms to startup businesses in Ethiopia, bureaucratic challenges regarding the various types of permits, registrations, and licenses required to do business in Ethiopia remain unresolved or even it is getting worse. These include obtaining investment licenses, business licenses, and tax registrations.
Recently, Ethiopia's Ministry of Innovation and Technology and Job Creation Commission jointly produced a statement to address the challenges faced by startups. According to those statements, a draft proclamation has been developed, and a National Startup Council and an Innovation Fund are intended to be established by Ethiopia's Startup Act. If approved by the council of ministers, this will ease the launch, expansion, and scaling of startups. According to the preamble of the draft proclamation, it is made with the view that it is necessary:
• To create an innovative ecosystem in Ethiopia which is able to effectively and efficiently promote innovation and job creation;
• To remove barriers to entrepreneurship by easing the for establishing, running, expanding, and closing a business; and
• To encourage and support entrepreneurs who establish startup to launch businesses which that create job opportunities, and i
ial-Management Lcture note for masters studemtsSewaleAbate1
The document provides an introduction to key concepts in financial management. It defines financial management and explains its objectives and elements. It discusses important concepts like capital structure, capitalization, long-term and short-term sources of finance, financial planning, financial statements, financial ratios, leverage, and the roles of a financial manager. It also describes the importance of financial reporting and the use of a chart of accounts. The document uses an example of a company that failed due to poor financial management practices to illustrate the importance of proper financial management.
The document provides an overview of financial management. It discusses the three main decision areas that financial managers deal with: investment decisions, financing decisions, and asset management decisions. It also explains that the goal of financial management is to maximize shareholder wealth by increasing the share price through both current and future profits in a way that accounts for risk. Additionally, it covers topics such as agency theory, corporate governance, and the roles and responsibilities of key financial positions within an organization.
The document provides an overview of financial management. It discusses the three main decision areas that financial managers deal with: investment decisions, financing decisions, and asset management decisions. It also explains that the goal of financial management is to maximize shareholder wealth by increasing share price. Additionally, it covers topics such as agency theory, corporate governance, and the roles and responsibilities of key financial positions within an organization.
The document discusses financial management and capital structure. It defines financial management as planning, directing, monitoring, and controlling a company's monetary resources. It also discusses the key objectives of financial management which include creating wealth, generating cash flow, and providing sufficient returns. The document then covers various aspects of financial management including financial planning, organizing, controlling, and reporting. It also discusses the importance of financial management and fundamental financial management decisions related to investments, financing, and dividends. Finally, the document defines capital structure and discusses different types of capital including equity and debt capital. It also covers various approaches to analyzing capital structure.
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This document provides an overview of a project management course to be taught from March to July 2024 by Professor Aminullah Assagaf. The course will cover topics such as project planning, scheduling, control methods, critical path method (CPM), probabilistic activity times, and project crashing and time-cost tradeoffs. It lists learning objectives, lecture outlines, and resources including a YouTube channel for the course.
The document provides an outline for a lecture on operations management. It discusses topics related to human resources including human resources and quality management, changing nature of HR management, contemporary trends in HR, employee compensation, managing diversity, job design, job analysis, and learning curves. It provides definitions and explanations of these topics with examples. The lecture will be given by Professor Aminullah Assagaf from March to July 2024.
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This document provides an outline for a lecture on operations management topics related to capacity and facilities planning. The key points covered include capacity planning strategies, economies of scale, basic layout types including process, product and fixed position layouts. Methods for designing different layouts are discussed. The document also covers topics like line balancing, cellular layouts, flexible manufacturing systems, and mixed model assembly lines.
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This document provides an overview of operations management topics including operations strategy, quality management, and changing corporations. It discusses four steps for strategy formulation, competitive priorities, the role of operations in corporate strategy, strategic decisions in operations, and issues and trends affecting operations. Key concepts are defined and companies are used as examples to illustrate various strategies and quality management techniques. The document appears to be from a textbook or set of lecture slides on operations management.
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The recent surge in pro-Palestine student activism has prompted significant responses from universities, ranging from negotiations and divestment commitments to increased transparency about investments in companies supporting the war on Gaza. This activism has led to the cessation of student encampments but also highlighted the substantial sacrifices made by students, including academic disruptions and personal risks. The primary drivers of these protests are poor university administration, lack of transparency, and inadequate communication between officials and students. This study examines the profound emotional, psychological, and professional impacts on students engaged in pro-Palestine protests, focusing on Generation Z's (Gen-Z) activism dynamics. This paper explores the significant sacrifices made by these students and even the professors supporting the pro-Palestine movement, with a focus on recent global movements. Through an in-depth analysis of printed and electronic media, the study examines the impacts of these sacrifices on the academic and personal lives of those involved. The paper highlights examples from various universities, demonstrating student activism's long-term and short-term effects, including disciplinary actions, social backlash, and career implications. The researchers also explore the broader implications of student sacrifices. The findings reveal that these sacrifices are driven by a profound commitment to justice and human rights, and are influenced by the increasing availability of information, peer interactions, and personal convictions. The study also discusses the broader implications of this activism, comparing it to historical precedents and assessing its potential to influence policy and public opinion. The emotional and psychological toll on student activists is significant, but their sense of purpose and community support mitigates some of these challenges. However, the researchers call for acknowledging the broader Impact of these sacrifices on the future global movement of FreePalestine.
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Philippine Edukasyong Pantahanan at Pangkabuhayan (EPP) CurriculumMJDuyan
(𝐓𝐋𝐄 𝟏𝟎𝟎) (𝐋𝐞𝐬𝐬𝐨𝐧 𝟏)-𝐏𝐫𝐞𝐥𝐢𝐦𝐬
𝐃𝐢𝐬𝐜𝐮𝐬𝐬 𝐭𝐡𝐞 𝐄𝐏𝐏 𝐂𝐮𝐫𝐫𝐢𝐜𝐮𝐥𝐮𝐦 𝐢𝐧 𝐭𝐡𝐞 𝐏𝐡𝐢𝐥𝐢𝐩𝐩𝐢𝐧𝐞𝐬:
- Understand the goals and objectives of the Edukasyong Pantahanan at Pangkabuhayan (EPP) curriculum, recognizing its importance in fostering practical life skills and values among students. Students will also be able to identify the key components and subjects covered, such as agriculture, home economics, industrial arts, and information and communication technology.
𝐄𝐱𝐩𝐥𝐚𝐢𝐧 𝐭𝐡𝐞 𝐍𝐚𝐭𝐮𝐫𝐞 𝐚𝐧𝐝 𝐒𝐜𝐨𝐩𝐞 𝐨𝐟 𝐚𝐧 𝐄𝐧𝐭𝐫𝐞𝐩𝐫𝐞𝐧𝐞𝐮𝐫:
-Define entrepreneurship, distinguishing it from general business activities by emphasizing its focus on innovation, risk-taking, and value creation. Students will describe the characteristics and traits of successful entrepreneurs, including their roles and responsibilities, and discuss the broader economic and social impacts of entrepreneurial activities on both local and global scales.