Chapter1

Chapter1 - FIN 3100: Chapter 1 Introduction to Finance...

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
FIN 3100: Chapter 1 Introduction to Finance
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Learning Objectives Describe the cycle of money, the participants in the cycle, and the common objective of borrowing and lending. Explain the different ways of classifying financial markets. Distinguish the four main areas of finance and briefly explain the financial activities that each encompasses. Discuss the three main functions of financial management. Delineate the three main types of business organizations and their respective advantages and disadvantages. Identify the main objective of the finance manager and how that objective might be achieved. Illustrate agency theory and the principal-agent problem.
Background image of page 2
Cycle of Money Financial management is generally defined as those activities that create or preserve the economic value of the assets of an individual, business, or corporation. Financial management comes down to making sound financial decisions. Financial intermediaries (middlemen) assist in the movement of money from lenders to borrowers and back again. This process is termed the cycle of money and its objective is to make all the participants better off.
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
FIGURE 1.1   The money cycle
Background image of page 4
Financial Markets and the Money Cycle Forums where buyers and sellers of financial assets and commodities meet. Financial markets can be classified by:
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 14

Chapter1 - FIN 3100: Chapter 1 Introduction to Finance...

This preview shows document pages 1 - 6. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online