UNIT 3: FINANCIAL MANAGEMENT AND
PRINCIPLES
,
, Finance is the study of how people and businesses evaluate investments and raise
capital to fund them.
, 1. What long-term investments should the firm undertake? (capital budgeting
decisions)
2. How should the firm fund these investments? (capital structure decisions)
3. How can the firm best manage its cash flows as they arise in its day-to-day
operations? (working capital management decisions)
PRINCIPLES
,
, Finance is the study of how people and businesses evaluate investments and raise
capital to fund them.
, 1. What long-term investments should the firm undertake? (capital budgeting
decisions)
2. How should the firm fund these investments? (capital structure decisions)
3. How can the firm best manage its cash flows as they arise in its day-to-day
operations? (working capital management decisions)
