1. An Overview of Financial Management

a. Goals of financial management

b. Agency theory

c. Organizational entities

i. Sole proprietorship

ii. Partnerships (including Limited partnerships)

iii. Corporations

d. Transfers of capital

i. Direct

ii. Indirect through an investment bank

iii. Indirect through a financial intermediary

e. Financial Markets

i. Primary and secondary markets

Primary - securities issues for first time, company that

issued securities raises the money

Secondary

ii. Money and capital markets

Treasury bills

Commercial paper

Bankers acceptances

f. Terms

2. Financial Statements and Taxes

Beforemath of statements, what do they mean?

What does EBIT mean?

a. Income Statement

b. Balance Sheet

-Format, what belongs on each side, how did the company finance

the assets?

-Equity section, how much owners invested in the business

c. Statement of Cash Flows

-How the company used the money over the period of time

3 sections

CF from operating activities (daily business)

CF from investing activities (buying stocks, investing in equipment)