CHAPTER 1 ADDITIONAL SUMMARY
•Financial Management (managerial finance, corporate finance, business finance)
-decision making process concerned with planning, acquiring and utilizing funds
-process for analysis of making financial decisions
•Finance is the body of facts, principles, and theories relating to raising and using money
key points to remember:
1.Finman is part of a larger discipline called FINANCE
2. Goal of finman is to make money and add value for the owners (this is a vague goal). A more
precise and appropriate goal is to maximize the current value per share of the existing stock or
ownership in a business firm
3. Shareholders are the residual owners (they are entitled to only what is left after employees,
supplier, creditor, etc. with a legitimate claim are paid their due)
