Scribd
Upload
54 views18 pages

Intro To Finance Video

The document provides an introduction to business finance, defining finance and describing the primary duties of a financial manager which include financial planning and analysis, investment decisions, financing decisions, and dividend decisions in order to help achieve organizational goals. It also describes the roles of financial institutions and markets in providing various financial instruments and environments for trading securities, commodities, and other financial assets.

Uploaded by

Dave Sallao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
54 views18 pages

Intro To Finance Video

The document provides an introduction to business finance, defining finance and describing the primary duties of a financial manager which include financial planning and analysis, investment decisions, financing decisions, and dividend decisions in order to help achieve organizational goals. It also describes the roles of financial institutions and markets in providing various financial instruments and environments for trading securities, commodities, and other financial assets.

Uploaded by

Dave Sallao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PPTX, PDF, TXT or read online on Scribd
You are on page 1/ 18

Introduction to Business Finance

An Introduction to
Finance
Define -Define Finance

-Describe the duties and responsibilities of


Describe the financial manager
Lesson
Objectives -Describe how the financial manager helps
Describe in achieving organizational goals

-Describe the role of financial institutions


Describe and markets.
 Finance is the study of the art and the
science of money management; it is
based on the Latin root finis, meaning
the end. In managing ours or our firm’s
What is money, we consider historical
outcomes or “endings,” and we
Finance? propose future results as a function of
decisions made today. Those outcomes
or results are typically portrayed using
financial statements.
Overview of other disciplines involved in
Finance
The Primary Duties of the Financial
Manager

Whether managing monies for the home,


or for the firm, our duties are met with
decisions framed by the same general
principles. These principles instruct us
in making main types of decisions as
we perform those primary duties.

Financial Planning and Analysis


Investment Decisions
Financing Decisions
Dividend Decisions
Financial Planning and Analysis

 Gauge company’s financial health


through the use of financial ratios
 Working with other departments in
preparation of their budgets
 Creation of internal reports for the
top management
 Comparison of historical results
against budgets and forecasts.
Analyzing differences and how to
make improvements.
Investment  Evaluation of projects in terms of
Decisions (also profitability.
Which project/proposal will make the most
known as profit.
Assumptions/Considerations of all risks
Capital involved

Budgeting) Since the resources of the company is


limited, it must be carefully studied on
where to invest the assets of the company.
 If in investment, we choose where to
put the company’s assets, in financing,
we choose/decide how to acquire
Financing assets. This is usually through a
combination of equity (investment) and
Decisions debt. An acceptable ratio of equity to
debt is usually determined by industry
standards or internal company
policies/practices.
 Should the company gain profits,
Finance managers decide whether to:
Dividend -distribute all profits to shareholders
decisions -retain profit for future investments
-distribute part of it
 Financial Institutions:
A financial institution (FI) is a
company engaged in the business of
dealing with monetary transactions, such
as deposits, loans, investments and
Financial currency exchange. Financial institutions
encompass a broad range of business
Environment operations within the financial services
sector, including banks, trust companies, 
insurance companies, and brokerage firms
or investment dealers.
 Financial instruments are assets that
can be traded. They can also be seen
Financial as packages of capital that may be
traded. These assets can be cash, a
Environment contractual right to deliver or receive
cash or another type of financial
(cont.) instrument, or evidence of one's
ownership of an entity
 A financial market is a market in
which people trade
Financial financial securities, commodities, and
other interchangeable items of value at
Environment costs and prices that reflect supply and
demand. Securities include stocks and
(cont.) bonds, and commodities include
precious metals or agricultural
products.
 Stock Market
The stock market trades shares of
ownership of public companies. Each share
Financial comes with a price, and investors make
money with the stocks when they perform
Market well in the market. It is easy to buy
stocks. The real challenge is in choosing
the right stocks that will earn money for
the investor.
 Bond market
The bond market offers opportunities for
Financial companies and the government to secure
money to finance a project or investment.
Market In a bond market, investors buy bonds
from a company, and the company returns
the amount of the bonds within an agreed
period, plus interest.
 Money Markets
 Typically the money markets trade in
products with highly liquid short-term
maturities (of less than one year) and
Financial are characterized by a high degree of
safety and a relatively low return in
Market interest. Individuals may also invest in
the money markets by buying short-
term certificates of deposit (CDs), 
municipal notes, or Treasury bills,
among other examples
How does the  Analyzes trends that will support in
decision making
Finance  Evaluates financial health of the
organization
manager helps  Maximizes profitability of investments
in achieving for company growth
Determines and calculates financial
organizational

risks

goals

You might also like