Bus 530 IFL
Integration of Faith
Liberty University
February 3, 2013
Introduction Money is integral to an economy. It creates a fair system of trade, helps measure the value of products and services, and encourages people to work hard. The Bible does warn about greed, “He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase: this is also vanity” (Ecclesiastes 5:10, King James Version). Having a goal of running a successful business is not against the Bible’s teachings. In fact, “there is little conflict between doing well (maximizing value) and doing good” (Brealey, Myers, & Marcus, 2012, p. 14). The Bible can be applied to any and all aspects of business and finances.
Corporate Finance The Bible, of course, is full of examples, instances, and stories about business. Hagerman (1982) states: An important element in business planning is the budgeting process, and this subject is not neglected. Luke 14:28-29 says, ‘Which of you here intending to build a tower would not first sit down and work out the cost to see if you had enough to complete it?’ This quotation refers not only to project budgeting but also to cash flow forecasts. The need for such budgeting is as true today as it was in St. Luke’s time (p. 50). A few of the first topics covered in the course are business organizations and leadership, financial institutions, accounting statements and cash flows, formulas to help measure the value and efficiency of a company, and the importance of business ethics (Brealey et al., 2012). Ethics plays a huge role in business as it keeps businesses and employees honest, promotes accuracy, and protects those who could otherwise be hurt by someone else’s scheming. In order to protect ethics, sometimes transparency is needed to help those tempted to commit fraudulent acts. The Bible states, “Better is the poor that walketh in his integrity, than he that is perverse in his lips, and is a fool” (Proverbs 19:1). The
Liberty University
February 3, 2013
Introduction Money is integral to an economy. It creates a fair system of trade, helps measure the value of products and services, and encourages people to work hard. The Bible does warn about greed, “He that loveth silver shall not be satisfied with silver; nor he that loveth abundance with increase: this is also vanity” (Ecclesiastes 5:10, King James Version). Having a goal of running a successful business is not against the Bible’s teachings. In fact, “there is little conflict between doing well (maximizing value) and doing good” (Brealey, Myers, & Marcus, 2012, p. 14). The Bible can be applied to any and all aspects of business and finances.
Corporate Finance The Bible, of course, is full of examples, instances, and stories about business. Hagerman (1982) states: An important element in business planning is the budgeting process, and this subject is not neglected. Luke 14:28-29 says, ‘Which of you here intending to build a tower would not first sit down and work out the cost to see if you had enough to complete it?’ This quotation refers not only to project budgeting but also to cash flow forecasts. The need for such budgeting is as true today as it was in St. Luke’s time (p. 50). A few of the first topics covered in the course are business organizations and leadership, financial institutions, accounting statements and cash flows, formulas to help measure the value and efficiency of a company, and the importance of business ethics (Brealey et al., 2012). Ethics plays a huge role in business as it keeps businesses and employees honest, promotes accuracy, and protects those who could otherwise be hurt by someone else’s scheming. In order to protect ethics, sometimes transparency is needed to help those tempted to commit fraudulent acts. The Bible states, “Better is the poor that walketh in his integrity, than he that is perverse in his lips, and is a fool” (Proverbs 19:1). The
References: Brealey, R. A., Myers, S. C., & Marcus, A. J. (2012). Fundamentals of corporate finance. New York: McGraw-Hill/Irwin. Goldman, D. (2012, March 05). At $500 billion, apple is worth more than poland. Retrieved from http://money.cnn.com/2012/02/29/technology/apple_market_cap/index.htm Hagerman, R. L. (1982, June). Accounting in the bible. Journal of Accountancy, 153(6), 48-52. Retrieved from http://p2048-www.liberty.edu.ezproxy.liberty.edu:2048/login?url=http://search.proquest.com.ezproxy.liberty.edu:2048/docview/198261046?accountid=12085 Holy Bible, King James Version ®, KJV®. (n.d.). Retrieved from http://www.biblegateway.com Holy Bible. (2011). New international version. Grand Rapids, Michigan. Ballow, J., Burgman, R., Molnar, M. (2004) "Managing for shareholder value: intangibles, future value and investment decisions", Journal of Business Strategy, Vol. 25 Iss: 3, pp.26 - 34 Retrieved from http://www.emeraldinsight.com.ezproxy.liberty.edu:2048/journals.htm?articleid=874343 &show=abstract Ramsey, D. (2007). The total money makeover. Nashville, TN: Thomas Nelson.