The Bellman-Ford algorithm solves the single-source shortest-path problem for weighted directed graphs, even with negative edge weights, by detecting negative-weight cycles and computing shortest paths. It operates with a time complexity of O(V^2 + VE) and guarantees correct shortest-path weights if no negative cycles are reachable from the source. Additionally, the document discusses the dag-shortest-paths algorithm for directed acyclic graphs, which efficiently computes shortest paths in linear time.