BUSINESS AND FAITH
Ka’iulani Kini K. Talbot
Liberty University Online
BUSI530-B07: Managerial Finance
Dr. Stephen Lacewell
October 9th, 2022
Author Note
Ka’iulani Kini K. Talbot
I have no known conflict of interest to disclose.
Correspondence concerning this article should be addressed to
Ka’iulani Kini K Talbot.
Email: kktalbot@liberty.edu
Business and Faith Integration Assignment
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Business and Faith Integration
The topic of faith relating to business is based on moral ethics and business performance
to ensure that the organization can run efficiently. Business finance aims for an organization to
perform while promoting good outcomes irrespective of size, type, or faith (Kolloju & Meoli,
2022). However, there is a constant factor of trusting that financial managers and firms report
numbers as accurately as possible. Philippians 4:19 mentions how we must have faith that we
will get all the information we need to ensure we can run a business efficiently by the verse, “but
my God shall supply all your need according to his riches in glory by Christ Jesus” (KJV, 2016).
The primary responsibility of a company's financial manager is to maximize its value to its
owners (Brealey, Myers, & Marcus, 2020). To maximize the value of an organization, a financial
manager can seek guidance through the bible or bible verses. The Bible teaches us through many
verses how to maximize the power of a Company through cash flow, assets, and wealth.
Maximizing the power of a firm requires proper financial management as a way to
manage cash flow. A bible verse in Proverbs 17:16 teaches us to understand cash flow to gain
knowledge of proper financial management by questioning, “why should fools have money in
hand to buy wisdom, when they are not able to understand it?” (KJV, 2016). A firm's cash flow
manages working capital through cash receivables from customers, inventory holdings, and cash
payments to suppliers, which are linked to the firm's operations (Kroes, & Manikas, 2014).
Financial managers face many decisions to increase the power of a firm, and cash flow may
increase by selling stocks to borrow money from stakeholders and investing it in future assets
that can potentially bring more money to the firm.
A common practice for corporations to raise cash flows for investment can either be
performed by borrowing or selling new shares of common stock to investors (Brealey, Myers, &
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Marcus, 2020). Although borrowing money from investors may increase an immediate cash flow,
it can create an obligation to repay that debt to the lender. Proverbs 22:7 speaks about how a debt
by investors can impose this obligation on a firm; “The rich ruleth over the poor, and the
borrower is servant to the lender (KJV, 2016). To avoid being the servant to an investor, a better
practice for some organizations is issuing common stocks to new stockholders. Based on the
dividend discount valuation, the predictive power of a stock issuance is driven by firms’ future
cash flows (Li et al., 2018). Creating a new cash flow from investors or money generated from
the common stock can increase the purchasing power of a firm to invest in assets.
Proverbs 10:4 teaches us the creativity of investing money to increase wealth by saying,
“He becometh poor that dealeth with a slack hand: but the hand of the diligent maketh rich (KJV,
2016). Part of the duties of a financial manager is ensuring that the remaining free cash flow is
invested back into the firm in the form of purchasing assets. Investment occurs when a
corporation with a more predictable income has a stronger incentive to transform liquid assets,
like cash, into more productive assets (Moshirian et al., 2017). Having productive assets can aid
a firm in increasing its growth potential and therefore increase its cash flow.
Investment in assets ensures a corporation gains market value, which accounts for the
company’s assets and cash flows and the future cash flow that those assets will produce. There
are two different categories of assets in which a firm can invest. Assets, although considered in
market value, defer from book value. The difference is that book value does not account for
intangible assets like research and development, marketing, or trademarks (Brealey, Myers, &
Marcus, 2020). Mathew 25:28 teaches us not to oversee the power of intangible assets as the
Lord’s power can be taken and given unto him, which hath ten talents (KJV,2016). The power of
having intangible assets helps a firm to increase its future power of wealth.
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Hamilton and Hepburn define wealth as a stock of assets that can generate future income
and well-being (2014). Many may think that being wealthy refers to having a high income or
sufficient cash flow; an organization may be considered wealthy due to its substantial financial
assets. Wealth is the abundance of resources or assets. Some firms go through trouble to acquire
wealth, but it will all be worth it to achieve wealth for everyone. Psalms 66:12 mention how one
goes through fire and through water: but thou broughtest us out into a wealthy place (KJV,2016).
Even though income and wealth are related, the return on wealth represents the flow of income,
meaning the amount that wealth is invested in generating income.
Managing wealth to generate income requires honesty and practicality to avoid possible
problems. Issues may arise from managing wealth. Managers and owners face conflicts in
financial management as they reap the rewards of their good decisions and hard work due to their
wealth being tied to the value of their business (Brealey, Myers, & Marcus, 2020). This conflict
is known as an agency problem. It is essential not to be tempted to trigger an agency problem
like Matthew 26:41 says, “watch and pray, that ye enter not into temptation: the spirit indeed is
willing, but the flesh is weak” (KJV, 2016). Falling into an agency problem can cause an
organization to lose value and wealth. To prevent this issue, one must set internal controls to
prevent wasteful investments (Brealey, Myers, & Marcus, 2020). Managers or owners who lack
awareness of financial decisions may lack spiritual wealth.
Spiritual wealth comes from within everyone. Spiritual wealth gives us satisfaction and
total awareness through our surrounding environment and spiritual beliefs. Managing a business
requires skill, knowledge, and investment to influence an organization. Social status and
influence have been successful due to political and spiritual wealth (Nolte, 2018). As financial
managers have organizational social status, their influence and rightfulness are imperative to
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increase their own wealth and the organization’s wealth to operate efficiently. Stakeholders and
managers must increase their knowledge and wealth to have proper corporate governance.
Knowledge wealth gives the actual power to corporations to compete and deliver value to
shareholders by following the proper laws and regulations. Power exists in people who have
acquired the knowledge to tap into the spiritual worlds and live across these overlapping duties
in spectacular ways (Akyeampong & Owusu-Ansah, 2022). A highly knowledgeable manager
will make honest financial decisions and avoid taking advantage of a growing company. With
truth comes knowledge, and like John 8:32 said, and the truth shall make you free (KJV, 2016).
The proper financial manager can guide a corporation to increase its cash flow, which can
be turned into assets that generate wealth, which is the primary goal of properly managing a
well-structured company. Applying the proper guidance from the Bible to business management
can ensure a company’s prosperity. Job 22:21 speaks about having faith that success will come if
we “submit to God and be at peace with him; in this way, prosperity will come to you” (KJV,
2016).
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References
Akyeampong, E., & Owusu-Ansah, D. (2022). Wealth in knowledge: Spiritual service
and political power in precolonial asante. Journal of West African History, 8(1), 119–141.
https://doi.org/10.1215/jwestafrihist.8.1.0119
Brealey, R. A., Myers, S. C., & Marcus, A. J. (2020). Fundamentals of corporate finance
with Connect (10th ed.). Boston, MA: McGraw-Hill.
Hamilton, K., & Hepburn, C. (2014). wealth. Oxford Review of Economic Policy, 30(1),
1–20. https://doi.org/10.1093/oxrep/gru010
King James Version (2016). The holy bible. Christian Art Publishers
Kolloju, A. K., & Meoli, M. (2022). Efficiencies of faith and secular microfinance
institutions in regions of asia, africa, and latin america: A two-stage dual efficiency bootstrap
DEA approach. Economies, 10(3), 66. https://doi.org/10.3390/economies10030066
Kroes, J. R., & Manikas, A. S. (2014). Cash flow management and manufacturing firm
financial performance: A longitudinal perspective. International Journal of Production
Economics, 148, 37–50. https://doi.org/10.1016/j.ijpe.2013.11.008
Li, A. M., Naidu, D., Navissi, F., & Ranjeeni, K. (2018). Net stock issuance anomaly and
cash flow explanation: A research note. Australian Journal of Management, 43(2), 286–304.
https://doi.org/10.1177/0312896217717306
Moshirian, F., Nanda, V., Vadilyev, A., & Zhang, B. (2017). What drives investment–cash
flow sensitivity around the world? an asset tangibility perspective. Journal of Banking &
Finance, 77, 1–17. https://doi.org/10.1016/j.jbankfin.2016.12.012
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Nolte, I. (2018). Christianity, wealth, and spiritual power in ghana by karen lauterbach
(review). Africa (London. 1928), 88(4), 881–882.
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