D076 Finance Skills for Managers WGU
What is finance?
the study of how we allocate our assets over time in a risky world. (Future focuses)
What is accounting?
System of recording, reporting, and summarizing past financial information and transactions.
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What is Capital?
money or wealth used to invest in business or enterprise.
The 3 areas of Finance
corporate finance, investments, institutions
Business Finance
An area of finance that deals with sources of funding, the capital structure of corporations, the
actions that managers take to increase the value of the firm to its owners, and the tools and
analysis used to allocate financial resources.
Investments
the action or process of investing money for profit or material result.
, Asset Pricing
The process of valuing assets.
What is the primary aim of personal finances goals?
To maximize satisfaction from products purchased and services obtained.
Utility
Ability or capacity of a good or service to be useful and give satisfaction to someone.
What is the goal of the financial manager?
to maximize the wealth of the owners, the stockholders
Publicly traded firms
Firms that have issued shares to the public.
Privately held companies
Firms that have not issued shares to the public where the ownership rights are privately held.
What main tasks a financial manager of a firm does in order to achieve the goal of the firm?
Making investment decisions, making financial decisions, and managing working capital.
Research Development
The business function responsible for improving and developing services and products.
Making Financing Decisions for investments
If the investments are large, the firm may need to issue new stocks(equity) or new bonds(debt)
to raise capital to finance them.
Corporate Finance
The finance function within a business. One of the three main areas of finance.
Financial Analysis
Evaluating an organization's financial statements to determine the profitability of the
organization, a division within the organization or a specific event or project.
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