Chapter 1 - Introduction to Corporate
Finance Questions and Answers Distinction
Level 2023
What is Corporate Finance? - -No matter what type of business you started, you would always
HAVE to answer these 3 Important questions relating to Finance:
-What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 1* - -
1. *WHAT* long term investments should you take on?
EX: Line of Business and Buildings, Machinery, Equipment.
-What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 2* - -
2. *WHERE* will you get the long term financing to pay for your investment?
-What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 3* - -
3. *HOW* will you manage your everyday financial activities?
EX: collecting from customers, paying suppliers?
-Thus, broadly speaking, Corporate Finance is... - -The study of ways to answer these THREE
questions!
-The Financial Manager - -The Financial Manager
-In a Large corporation, the Financial Manager would be in charge of answering what? - -In
charge of answering the three big questions.
-The Financial Management function is usually associated with Who in a firm? - -A Top Officer
of the firm, such as:
VP of Finance
Or some sort of CFO (Chief Financial Officer)
-What does our study in this textbook mostly reflect on, the Controllers Office or the Treasury
Office? - -The Treasury Office
-What is the Controller's Office usually responsible for? - -Costs and Financial Accounting, tax
payments, and management information systems (MIS)
-What is the Treasury Office usually responsible for? - -Manage cash and credit, financial
planning, and its capital expenditures. All related to the three big questions!!!
-Financial Management Decisions - -Financial Management Decisions
-Capital Budgeting - -The 1st question concerns long term investments.
Finance Questions and Answers Distinction
Level 2023
What is Corporate Finance? - -No matter what type of business you started, you would always
HAVE to answer these 3 Important questions relating to Finance:
-What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 1* - -
1. *WHAT* long term investments should you take on?
EX: Line of Business and Buildings, Machinery, Equipment.
-What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 2* - -
2. *WHERE* will you get the long term financing to pay for your investment?
-What are the THREE BIG QUESTIONS that help define Corporate Finance? *NUMBER 3* - -
3. *HOW* will you manage your everyday financial activities?
EX: collecting from customers, paying suppliers?
-Thus, broadly speaking, Corporate Finance is... - -The study of ways to answer these THREE
questions!
-The Financial Manager - -The Financial Manager
-In a Large corporation, the Financial Manager would be in charge of answering what? - -In
charge of answering the three big questions.
-The Financial Management function is usually associated with Who in a firm? - -A Top Officer
of the firm, such as:
VP of Finance
Or some sort of CFO (Chief Financial Officer)
-What does our study in this textbook mostly reflect on, the Controllers Office or the Treasury
Office? - -The Treasury Office
-What is the Controller's Office usually responsible for? - -Costs and Financial Accounting, tax
payments, and management information systems (MIS)
-What is the Treasury Office usually responsible for? - -Manage cash and credit, financial
planning, and its capital expenditures. All related to the three big questions!!!
-Financial Management Decisions - -Financial Management Decisions
-Capital Budgeting - -The 1st question concerns long term investments.
