BUSINESS FINANCE教学资料 Lecture 1 Week 1.pdfVIP

Lecture 1 Introduction to Corporate Finance (Chapter 1) Corporate Governance (Chapter 2) Waquar Ahmad Waquar.ahmad@surrey.ac.uk www.surrey.ac.uk/sbs Synonymously used • Corporation = Company = Firm • Business Finance = Corporate Finance • Shareholder = Stockholder = Equity-holder • Bondholder = Creditor = Lender www.surrey.ac.uk/sbs Overview of Lecture Part A (Chapter 1) Business Finance and the Financial Manager The Goal of Financial Management Financial Markets and the Corporation Part B (Chapter 2) Forms of Business Organisations Corporate Governance www.surrey.ac.uk/sbs What is Business Finance? Investment Decision • Long term investments to be made - lines of business, kind of buildings, machinery, equipment, country to be in etc. Financing Decision • Source of long-term financing for long term projects - shareholders vs lenders Liquidity • Managing everyday activities – buy raw materials, pay workers, pay interest on loans etc www.surrey.ac.uk/sbs Importance of Business Finance Nearly everyone in a company and in any industry should be interested in Business Finance Entrepreneur The key to run your firm successfully - and in fact the only reliable way of doing it - is through the ‘numbers’, that is through your business finances (take a loan, launch a new project, give credit to your customers?) Top managers In strategic decisions, like acquisitions, expanding abroad, etc. you will have to consider whether you can increase profits for the shareholders. So, you have to evaluate thes