Financial Management Assignment #1
Question: Identify which 3 of the 10 Principles of Finance are most important to YOU and if starting a business or running a department, how would you communicate the importance to your department and directors?
10 Principles of Finance (chapter 1)
- Risk – Return Trade off
- Time Value of Money
- Cash -not profits – is King
- Incremental cash flows count
- The curse of competitive markets
- Efficient capital markets
- The agency problem
- Taxes bias business decisions
- All risk is not equal.
- Ethical dilemmas are everywhere in finance.