Introduction to Finance
Wealth Maximization: Why Firms Should Fouse On It?
Wealth maximization is an appropriate and operationally feasible criterion to choose among the alternative financial actions. It provides an unambiguous measure of what finance should seek to maximize in making investment and financing decisions on behalf of owners (shareholders). Every firm has a goal to make the firm investment and financial decisions rational. The goal...
10 Importance of Business Finance
Finance is the planning for funding resources and raising, controlling, and disposing of the same of a business organization with a view to attaining the ultimate goal and maintaining good relations between its resources and the claim against these resources. Business finance in a business organization, especially in a large-scale undertaking, is to perform several...
12 Principles of Business Finance
Business finance involves the application of the principles of general management to a particular financial operation. In respect of specific financial operations, the financial manager plans, organize, directs, and controls to further the ultimate goal of finance. The goals of finance are addressed through the principles of business finance, which can be placed in investment...
Financial Market: Meaning, Types
Most successful firms have ongoing needs for funds. They can obtain funds from external sources in three ways. One is through a financial institution that accepts savings and transfers them to those that need funds. Another is through the financial market that organized forums where the suppliers and demanders of various types of funds can...
Relationship of Finance with Economics, Accounting, Management, and Marketing
Finance is an integrated part of overall management and is not a very independent area. It draws heavily on related disciplines and fields of study, such as economics, accounting, management, and marketing. Although these disciplines are interrelated, there are critical differences among them. Relationship Between Finance and Economics Finance and economics involve the allocation and...
12 Internal and External Factors Influencing Financial Decision
Financial managers make financial decisions in light of an investment, financing, dividend, and liquidity decisions. Various factors affect the objective of the firm. What are the 8 Internal Factors Influencing Financial Decisions? Internal factors are those matters of a firm that influences the financial decisions of that firm. On these factors, the firm has control....
Business Finance: Definition, Objectives, Functions of Business Finance
Finance is related to the process, institutions, markets, and instruments involved in transferring money among individuals, businesses, and governments. What is Business Finance? Business finance is concerned with meeting all the financial needs of a business firm is called business finance. Business finance is the field of study with the help of which one can...
Profit Maximization: Meanings, Objection, Limitations
Profit maximization is the process of increasing profits to the greatest possible amount, selling as many products or services as possible at the highest possible price while reducing the costs and overheads at the lowest level possible.
Agency Problem: Meaning, Types, Agency Costs
An agency problem results when managers as agent for owners place personal goals ahead to corporate goals.
Financial Management: Meaning and Definition
Finance is the word used to describe the money resources available to individuals, business firms, governments, and the management of these money resources. Virtually all individuals and organizations earn or raise money and spend or invest money. Meaning of Finance Finance is the process of raising funds or capital for any expenditure. Finance can be...
Evolution of Finance (8 Stages of Financial Theory Evolution)
The field of finance is broad and dynamic. It directly affects the lives of every person and every organization. There are many areas and career opportunities in the field of finance. The financial manager plays a dynamic role in a modem business organization. Financial managers raise funds, manage cash positions, help increase acceptance of the...
Business Ethics: Definition, Principles, Features
Ethics can be defined as a systematic attempt that governs the sense of right or wrong and the values worth pursuing in life. What is Business Ethics? Business ethics refers to carrying business as per self-acknowledged moral standards. It is a structure of moral principles and code of conduct applicable to a business. Business ethics...
Corporate Social Responsibility: Definition, Concept, Process
A conflict between the interests of the stakeholder and the shareholder is endemic while addressing the issue of whose interests to prioritize. The provisioning to meet the interest of the stakeholders is seen as a dilution of the financial returns to the shareholders. As a dominant institution of society, business is now expected to conduct...
