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Learning Goals — Define finance and describe its three major areas and career opportunities. LG2 — Review basic forms of business organization, their strengths and weaknesses. LG3 — Describe managerial finance function and differentiate from economics and accounting.
LG7 — Discuss agency issue as it relates to owner wealth maximization. Learning Goals continued — Identify key activities of financial manager within the firm. What is Finance? Macro Finance Assets: Gross fixed assets Less: Accumulated dep. COM Relationship to Economics Fundamental Economic Principle: Cash outflow Accounting vs. Should Firms Maximize Profit? Maximizing Shareholder Wealth is a more comprehensive goal for the firm.
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