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1: Introduction to Financial Management

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Learning Objectives

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


1: Introduction to Financial Management is shared under a CC BY-NC 4.0 license and was authored, remixed, and/or curated by LibreTexts.

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