D076 Financial Skills for Managers EXAMS ALREADY PASSED

Finance vs. Accounting - Finance ~ Forward thinking Accounting ~ Looking at the past Finance defintion - Management and allocation of capital with the objective of investing, forecasting, budgeting, saving, borrowing, lending, and so on. Business finance - area of finance that deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the value of a firm for its owners, and the tools and analysis used to allocate financial resources. One of the challenges of finance - trying to place a dollar value on an asset that has uncertain payouts in the future. Which subspecialty of finance primarily involves deciding which assets will create more wealth and earn positive returns? - Investments In both personal finance and business finance, the main principle that underlies decision-making is - whether the benefits outweigh the costs. Goal of business finance is to - maximize owner wealth for a privately held company and to maximize shareholder wealth for a publicly held company. What is the primary goal of the financial manager of a firm? - To maximize owner wealth What should be the main question a firm asks when considering any investment decision? - Do the benefits of this investment outweigh the costs?