Chapter 1. Goal of the Firm 1) Profit Maximization? this goal ignores: a) TIMING of Returns (Time Value of Money - Ch.5) b) UNCERTAINTY of Returns (Risk.

Slides:



Advertisements
Similar presentations
FINANCIAL MANAGEMENT I AND II
Advertisements

Chapter 1 - An Introduction to Financial Management Chapter 1 - An Introduction to Financial Management  2005, Pearson Prentice Hall.
Ch. 1 - An Introduction to Financial Management  2002, Prentice Hall, Inc.
Risk and Return, Business Structures By R. S. Miolla.
Chapter 1 - Financial Management  Learning Objectives  Describe the “Cycle of Money”  Distinguish the four main areas of finance  Discuss financial.
Chapter 1. An Introduction to the Foundations of Financial Management—The Ties That Bind.
Finance and the Financial Manager Chapter 1. Topics Covered  What Is A Corporation?  The Role of The Financial Manager  Who Is The Financial Manager?
Chapter 1: Outline Corporate Finance and the Financial Manager
Business Organization and Financial markets Some basic concepts Financial management: Lecture 2.
Chapter 1 Overview of Financial Management  Introduction  Class Structure - Syllabus  Text – Preliminary Draft of Fin. Mgmt.  Exams – Open Book and.
Chapter 1.
1 Chapter 1 Introduction to Financial Management Key sections: –What is financial management? –Legal forms of business –Principles of taxation –Shareholder.
Key Concepts and Skills
CHAPTER ONE Introduction To Corporate Finance. Key Concepts and Skills Know the basic types of financial management decisions and the role of the financial.
1- 1 McGraw Hill/Irwin Copyright © 2009 by The McGraw-Hill Companies, Inc. All rights reserved Fundamentals of Corporate Finance Sixth Edition Richard.
Ch. 1 - Introduction to Financial Management  2000, Prentice Hall, Inc.
FINANCE IN A CANADIAN SETTING Sixth Canadian Edition Lusztig, Cleary, Schwab.
Types of Business Ownership Chapter 6.1
CHAPTER 1 Introduction to Corporate Finance 1. Why Study Finance? Marketing Budgets, marketing research, marketing financial products. Accounting Dual.
Overview of Finance. Financial Management n The maintenance and creation of economic value or wealth.
An Introduction to Financial Management  2002, Prentice Hall, In.
Chapter 1 Getting Started— Principles of Finance
Chapter 1 Introduction to Corporate Finance Copyright © 2012 by McGraw-Hill Education. All rights reserved.
1 Chapter 01 Introduction to Financial Management McGraw-Hill/Irwin Copyright © 2012 by The McGraw-Hill Companies, Inc. All rights reserved.
The Goals and Functions of Financial Management Chapter 1.
An Overview of Financial Management Class Objectives Read, interpret, and analyze financial reports Manage working capital and profits Understand the.
By Gustavo Lucio.  This type of ownership is for people who want to make all of their business decisions independently.  This type of ownership has.
Principles of Finance T ODAY’S S ESSION ‘Introduction to Finance’  Chapter One : An overview of managerial Finance.
CORPORATE FINANCE CORPORATE FINANCE J.D. Han King’s College, UWO.
FINANCE AND ENTERPRISES Zoubida SAMLAL - MBA, CFA Member, PHD candidate for HBS program.
Exam 1 Review 09/23/2008. Goal of the Firm Shareholder Wealth Maximization? this is the same as: a) Maximizing Firm Value b) Maximizing Stock Price.
LECTURE “0” (SELF STUDY) The Corporation Berk, De Marzo Chapter 1 1.
 Sole proprietorship is a business owned by only one person.  Sole proprietorship is for individual who want to work and make decisions independently.
Ch. 1 - An Introduction to Financial Management  2002, Prentice Hall, Inc.
1 - 1 Financial Management Prepared By Yousef EL-mudallal.
Chapter 1 Introduction to Corporate Finance Corporate Finance and the Financial Manager Forms of Business Organization The Goal of Financial Management.
Supplements.  Profit-making enterprises  Sole proprietorship:  Partnership:  Corporation:
©2012 McGraw-Hill Ryerson Limited 1 of 22 Learning Objectives 4.Debate alternative goals of the firm on the basis of social or management interest. (LO4)
Types of Business Ownership
Chapter 1 - An Introduction to Financial Management 08/28/08.
Chapter 1 AN INTRODUCTION TO FINANCIAL MANAGEMENT – THE TIES THAT BIND “…although it is not necessary to understand finance in order to understand these.
Chapter 1 - An Introduction to Financial Management Chapter 1 - An Introduction to Financial Management  2005, Pearson Prentice Hall.
Learning Objectives Identify the goal of the firm.
Chapter 1 Finance and Business. Areas of Finance Business Finance – Decision making within a business setting Investments – Allocation of money to earn.
© 2010 Cengage Learning. All Rights Reserved. May not be scanned, copied or duplicated, or posted to a publicly accessible Web site, in whole or in part.
Business Structures How can businesses be legally organized?
+ Introduction to corporate finance CH 1. + What is corporate finance? What is the role of the financial manager in the corporation? What is the goal.
1 - 0 What is finance Fields and jobs in Finance Forms of business organization Responsibility of financial staff in a corporation Goals of the corporation.
1 CHAPTER 1 Overview of Financial Management and the Financial Environment.
Chapter 1 Principles PrinciplesofCorporateFinance Ninth Edition Finance and The Financial Manager Slides by Matthew Will Copyright © 2008 by The McGraw-Hill.
1- 1 CURRICULUM  Introduction: goal of the firm  Financial markets and institutions, accounting and finance  Measuring corporate performance  Long-term.
Chapter 6 Business Ownership and Operations
INTRODUCTION TO CORPORATE FINANCE CHAPTER 1 Copyright © 2016 McGraw-Hill Global Education LLC. All rights reserved.
1 1 Chapter The Goals and Functions of Financial Management G. M. Wali Ullah Lecturer Independent University, Bangladesh.
Business Organizations Chapter 3. FORMS OF BUSINESS ORGANIZATIONS Chapter 3, Section 1.
Chapter 1 Fundamentals of Corporate Finance Fifth Edition Slides by Matthew Will McGraw-Hill/Irwin Copyright © 2007 by The McGraw-Hill Companies, Inc.
Copyright © 2006 McGraw Hill Ryerson Limited1-1 prepared by: Sujata Madan McGill University Fundamentals of Corporate Finance Third Canadian Edition.
Career Opportunities in Finance
Fundamentals of Corporate Finance
Introduction Chapter 1.
Sole Proprietorships -business owned by a single person or a married couple -3/4 of all businesses are sole proprietorships -Advantages -Disadvantages.
An Overview of Financial Management
Chapter 1 - An Introduction to Financial Management
Chapter 1 Principles of Finance
FIN Introduction Dr. Menahem Rosenberg
Learning Objectives Identify the goal of the firm.
Chapter 1 - An Introduction to Financial Management
Role and Environment of Managerial Finance
Role and Environment of Managerial Finance
An Overview of Financial Management
Presentation transcript:

Chapter 1

Goal of the Firm 1) Profit Maximization? this goal ignores: a) TIMING of Returns (Time Value of Money - Ch.5) b) UNCERTAINTY of Returns (Risk - Ch. 6)

Goal of the Firm 2) Shareholder Wealth Maximization? this is the same as: a) Maximizing Firm Value b) Maximizing Stock Price

Legal Forms of Business 1) Sole Proprietorship n A business owned by a single individual. n Owner maintains title to the firm’s assets. n Owner has unlimited liability. 2) Partnership n Similar to a sole proprietorship, except that there are two or more owners.

Legal Forms of Business 2a) General Partnership n All partners have unlimited liability. 2b) Limited Partnership n Consists of one or more general partners, who have unlimited liability, and n One or more limited partners (investors) whose liability is limited to the amount of their investment in the business.

Legal Forms of Business 3) Corporation n A business entity that legally functions separate and apart from its owners. n Owners’ liability is limited to the amount of their investment in the firm. n Owners hold common stock certificates, and ownership can be transferred by selling the certificates.

Financial Management Principles n 1) Risk - return trade-off n 2) Time value of money n 3) Cash is king n 4) Incremental cash flows count n 5) It’s hard to find really profitable projects n 6) Efficient capital markets n 7) The agency problem n 8) Taxes bias business decisions n 9) All risk is not equal n 10) Ethical dilemmas are everywhere in finance

Feedback: Privacy Policy Feedback
Do Not Sell My Personal Information
About project: SlidePlayer Terms of Service

© 2024 SlidePlayer.com Inc. All rights reserved.