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Introduction To Business Finance: Chapter 1 An Overview of Finance

Business organizations require financing to fund their operations and activities. Financing, also called capital or investment, is essential for businesses to earn profits and is considered the lifeblood of businesses. The main goal of any economic activity is to increase profits. The document provides an outline for an introduction to business finance course, covering topics like the financial environment, time value of money, risk and return, financial statement analysis, and international markets. It will discuss the functions of finance managers and how they can maximize shareholder wealth.

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Syrill Cayetano
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© © All Rights Reserved
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Download as PDF, TXT or read online on Scribd
0% found this document useful (0 votes)
63 views

Introduction To Business Finance: Chapter 1 An Overview of Finance

Business organizations require financing to fund their operations and activities. Financing, also called capital or investment, is essential for businesses to earn profits and is considered the lifeblood of businesses. The main goal of any economic activity is to increase profits. The document provides an outline for an introduction to business finance course, covering topics like the financial environment, time value of money, risk and return, financial statement analysis, and international markets. It will discuss the functions of finance managers and how they can maximize shareholder wealth.

Uploaded by

Syrill Cayetano
Copyright
© © All Rights Reserved
Available Formats
Download as PDF, TXT or read online on Scribd
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INTRODUCTION TO BUSINESS FINANCE

Introduction
Business concern needs finance to meet their requirements in the economic world. Any
kind of business activity depends on the finance. Hence, it is called as lifeblood of business
organization. Whether the business concerns are big or small, they need finance to fulfill their
business activities. In the modern world, all the activities are concerned with the economic
activities and very particular to earning profit through any venture or activities. The entire business
activities are directly related with making profit. (According to the economics concept of factors
of production, rent given to landlord, wage given to labor, interest given to capital and profit given
to shareholders or proprietors), a business concern needs finance to meet all the requirements.
Hence finance may be called as capital, investment, fund etc., but each term is having different
meanings and unique characters. Increasing the profit is the main aim of any kind of economic
activity.

Course Outline:
Chapter 1 An overview of Finance
1.1 Finance and the Organizational Structure of the firm
1.2 Managerial Actions to Maximize Shareholders’ Wealth
1.3 Functions of a Finance Manager
Chapter 2 The Financial Environment: Market, Institutions, and Interest Rates
2.1 The Financial Market
2.2 Financial Institutions
2.3 The Stock Market
2.4 The Cost of Money
2.5 Interest Rate Level
2.6 The Determinants of market Interest Rate
Chapter 3 Time Value of Money
3.1 Future Value Concept
3.2 Present Value Concept
3.3 Future Value of an annuity
3.4 Present Value of Annuity
Chapter 4 Risk and Return
4.1 Investment Return
4.2 The Trade-Off between Risk and Return
4.3 Risk in Portfolio Context
Chapter 5 Analysis of Financial Statement
5.1 Profitability Ratio
5.2 Liquidity Ratio
5.3 Debt Management Ratios
5.4 Assets Management Ratio
5.5 Limitations of Financial Statement Analysis
Chapter 6 The Framework of Financial Planning
6.1 Short-Term Financing
6.2 Long-Term Financing
Chapter 7 Importance of Money and Capital markets in the Philippine Economy
7.1 The Financial Market
7.2 The Investment Banker
7.3 Initial Public offering (IPO) Distribution Process
Chapter 8 Role of Securities and Exchange Commission at the Philippine Stock Exchange
8.1 Brief History of SEC
8.2 The sec after the Reorganization Brought about by the Passage of the Securities and
Regulation Code
8.3 SEC Rules Affecting Exchange or SRC Rules.
Chapter 9 Philippine Stock Exchange
9.1 Corporate Overview
9.2 Investing Procedure
9.3 Types of Securities that one can buy in the Stock Market
9.4Market place for buying or Selling Shares of Stock and/ or Bonds
9.5 Trading Cycle
Chapter 10 Portfolio Management
10.1 Ways of Profiting in the Stock Market
10.2 Classification of Stocks
10.3 Portfolio Management
Chapter 11 Securities Markets
11.1 Fundamentals of Securities Markets
11.2 Marketable Securities
11.3 Types of Marketable Securities
Chapter 12 International Markets and Global Investing
12.1 Major Securities Markets
12.2 Market Indices and Averages
12.3 Global Investing

References:
Book: Business Finance p 2-48
Author: Arthur S. Cayanan, Daniel Vincent H. Borja
Publication: Rex Bookstore; Rex Printing Company, Inc, 2017

Book: Basic Finance


Author: Herbert B. Mayo
Publication: Cengage Learning Asia, 2011

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