BUSI 2503 Chapter Notes -Dividend Yield, Cost Overrun, E-Commerce
28 Dec 2014
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Document Summary
Finance discipline has developed decision oriented analysis models to create value within the firm. Investing in value creating assets (current=short term, capital=long term) Financial management builds upon economics and accounting. Gives broad picture of the economy (i. e. gross domestic product, industrial production, disposable income, unemployment, inflation, interest rate, taxes) Provides understanding of the institutional structure of our mixed capitalist system (i. e. government regulations) Structure for decision making (i. e. risk analysis, supply and demand relationships) Provides much of the language of finance (i. e. assets, liabilities, cash flow) Financial data (i. e. income statements, balance sheets) Finance is a descriptive discipline, an analytical decision-oriented discipline, and a discipline used by financial managers. Analytical decision making and financial theories are just as applicable to small businesses as large. Ecommerce provides a more efficient way to interact with customers, business-to- The b2b model can help companies lower their costs of managing inventory, accounts receivable, and cash. A financial manager"s goal is shareholder wealth maximization.
