Part 1 Flashcards
(27 cards)
It is the study and management of money, assets, and investments to build wealth and achieve organizational goals
Finance
Ensures us to know what to do about cash
Financial Management
Interaction between fund providers
Financial Institutions and Markets
Encompasses the buying and selling of financial securities, etc…
Investments
Government revenues and expenditures
Public Finance
Management of an individual’s or household’s financial resources
Personal Finance
Management of funds and assets within a company
Business Finance
Charities, educational institutions, and environmental groups
Non-profit Finance
Responsible for allocating funds
Investment Decision
Must choose the best financing mix
Financing Decision
Balance the need for attracting investors and reflecting the company’s probability and growth potential
Dividend Policy
Private Banks (universal and rural)
Government-owned banks (Landbank)
Banking Institutions
Investment banks, insurance companies, credit unions, and pawnshops
Non-bank Financial Institutions
Acts as middlemen between those with excess funds and those in need of funds
Financial Intermediaries
It is where people trade financial securities and derivatives at low transaction costs.
Financial Markets
Business with only one owner
Sole Proprietorship
Business with 2 or more owners
Partnership
Business owned by shareholders
Corporation
Unlimited wants, limited resources
Organizational Goal: Maximizing Shareholder Wealth
Buying Land vs Investing
Spending vs Investing
The importance of Finance for business sustainability
Finance Manager’s Role
To acquire, manage, and allocate funds
Financial Planning
To make informed decisions
Better Investment Decisions
To make the right economic choices
Informed Economic Decisions
