PRINCIPLES OF FINANCE & ACCOUNTING LECTURE 1

 Articulate the role of the financial manager  Describe the operating environment of the firm  Discuss the goal of financial management  Discuss the agency problem

 Corporate Finance is the science and art of managing financial resources.  The primary focus of corporate finance is the acquisition and deployment of capital resources.

 Long term capital investments  Capital structure  Liquidity and short term investments  Risk Management

 Cash manager  Budget manager  Financial Analyst  Investment manager  Financial Planner

 Publicly traded corporation  Partnership (LLC)  Sole proprietorship  Not for profit

 Survival  Profitability  Growth  Maximizing shareholder wealth

 Management – an agency relationship  Owner verses management interests  Owner-Management conflicts – agency costs