2.Investing those funds in company assets to earn an attractive return given acceptable risks
Goals
Maximize the long-term wealth of the
company’s shareholders by increasing the market value of their shares
-Working Capital
-Capital Budgeting
-Financial Decisions
Financial Management
Financial Markets
Global network of corporations, financial institutions, governments
and individuals that either need money or have money to lend or invest
Capital Markets
Long-Term
-Common Stock
-Corporate Bonds
Money Markets
Deal in short-term
securities(<1 year)
-Treasury Bills
-Commercial Paper
Forms of organization
-Sole Proprietorship
-Partnership
-Corporation
Functions and Activities
1. Raising funds for the firm at minimal cost and acceptable risk
Finance
Accounting
Income
Statements
Balance
Sheets
Cash Flow
Economics
GDP
Disposable Income
Inflation
Interest Rate
Taxes
