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Corp Finance Ch.1

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Corp Finance Ch.1
Corp Finance Notes
Chapter 1: * The purpose of business? * Creative act * Process to create products that benefit people… a good good? * Improving the living situations * The purpose of Corp finance skills? * Key concepts and skills * Understand the purpose of business form a Christian point of view: * Purpose of business: a disciplined set of processes- supported by facilities, equipment and supplies, for harnessing, unleashing and organizing our creative capabilities and producing/ distributing “good” goods & service. * Good goods and services in the biblical contact have a moral compass * Christian perspective- they should not have intentionally harmful facts. * Even defense products and services can be viewed as “good” of they are designed for self-defense or a deterrent. * Which raises the conundrum that some “good” goods and services may be concerted to “bad” goods & services. [Physics, nuclear energy] * Unintended consequences or other “negative externalities” that need to be mindful of over the long-term. * Key concepts and skills * Understand the purpose of Corp. Finance in the overall context of business. * Provide the “fuel” and “lubricant” necessary for the expansion and growth in the provision of “good” goods and services. * Know the basic types of financial management decisions and the role of the financial manager * Know the financial implications of the various forms of business organization. * Know the goal of financial management.

1.1 What is Corp Finance? * how does the corporate finance manager provide the “fuel” and “lubricant” for growing and expanding the business? * By addressing the following three question: * Capital budgeting questions * Capital structure question * Short-term fuel or funds required managing operation. * Balance sheet model of the Firm * Total

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