Describe the role of finance in business

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Reference no: EM131086371

1. Describe the role of finance in business. Why study finance?

2. Identify at leat five (5) basic principles that form the foundations of finance, and provide short explanation to each principle you listed.

3. What do you know about the banking system? How does it help finance your business? Is it still relevant today?

4. Differentiate and explain the "time value of money" against the "cost of capital".

5. Explain extensively what is public offering verus private placements.

6. Differentiate investment in bonds against investment in stocks. Which would you prefer?

7. How does "short term credit" and "letter of credit" work?

8. Describe or explain the following terms...

a) Compound interest against future values

b) The "Present Value" of an annuity.

c) The meaning and measurement of "Risk and Return"

d) Managing "Working Capital"

e) What is "dividend income" against "interest income"?

Reference no: EM131086371

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