[FIN 311] - Midterm Exam Guide - Everything you need to know! (17 pages long)
Document Summary
Finance: science and art of managing money. Personal side: nance is concerned with individuals decisions on how much of their earnings they spend, save, and invest. Business side: how rms raise money from investors, how they invest to earn pro t, decide to reinvest pro ts in business or distribute back to investors. Accounting v finance: accounting: backward looking, precise, p&l (pro t and loss) oriented, finance: future oriented, approximate, cash oriented. Why is corporate nance important to all managers: corporate nance provides the skills managers need to: A. identify and select the corporate strategies and individual projects that add value to their rm (capital budgeting: forecast the funding requirements of their company, and devise strategies for acquiring those funds. Finance areas (4 main interconnected and interrelated areas: corporate nance (our focus) Investments (the game: financial institutions and markets. A basic organizational chart for a company. !2: the reminder of this discussion focuses on four areas.
