Business finance lecture notes pdf

What are the 6 principles of Finance?

Finance is founded on six important principles.
The first five relate to the economic behavior of individuals, and the sixth focuses on ethical behavior.
Time Value of Money:

  • The time-value-of-money principle helps us to understand the economic behavior of individuals and the economic decisions of the institutions and businesses that they run.
  • What are the functions of financial institutions?

    Lending and Investing Savings:

  • Another basic function of financial institutions is lending and investing.
    The money that has been put into these intermediaries may be lent to businesses, farmers, consumers, institutions, and governmental units.
  • What is a chapter 1 Introduction to finance?

    Chapter 1 Introduction to Finance Part A Introduction to finance.
    Financial decisions and financial markets.
    Present value.
    Part B Valuation of assets, given discount rates.
    Part C Determination of risk-adjusted discount rates.
    Part D Introduction to derivatives.

    Why should you study finance?

    There are several reasons for studying finance.
    Knowledge of the basics of finance help a person in making informed economic decisions, personal and business investment decisions, and career decisions.

    Shanghai Business School is a business school in Shanghai, China.
    It was formerly the East China Branch of the Tax Administration School of the Central Government of China.
    The school offers a range of undergraduate and postgraduate programs in business, management, finance, tourism, and hospitality.
    The undergraduate programs offered by Shanghai Business School include degrees in Accounting, Business Administration, Finance, International Trade, Marketing, and Tourism Management.
    The school also offers a range of postgraduate programs, including an MBA program that is highly regarded in China and has received international accreditation.

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