1: Introduction to Financial Management
( \newcommand{\kernel}{\mathrm{null}\,}\)
After completing this chapter, students should be able to
- Define what is meant by finance and describe some of its primary areas
- Define and compare/contrast sole proprietorships, partnerships, and corporations
- Identify key advantages/disadvantages of the corporate form of ownership
- Define and identify key characteristics of stocks and bonds
- Define the primary goal of financial management and identify the three elements that impact achieving that goal
- Explain and apply the concept of risk aversion
- Explain how social responsibility and ethical behavior is consistent with maximizing shareholder wealth
- Define the concept of agency relationships and explain how they influence the goal of maximizing shareholder wealth