1
Faith Integration Assignment
Victoria Olive
Department of Business, Liberty University
BUSI 530-B08 LUO: Managerial Finance
Dr. Kenneth George
March 7, 2021
2
Faith Integration Assignment
In finance, let alone managerial finance, many individuals may not see many connections
to the Bible. However, if you look into the topics specifically, you can find some topics in the
Bible that are integrated into managerial finance. Some of the topics that are integrated into faith
include diversification, making a budget, debt and patience with investing. Below, each of these
topics are discussed in detail as well as how they are integrated with the Bible.
Diversification
In this class, we spent some of our time learning and studying the decisions involved in
buying stock as well as how to evaluate those stocks. In regards to the purchasing of stock, it is
extremely beneficial to the investor to diversify the stocks that they buy. The more that the
investor diversifies, the less likely the investor is to lose money if the economy takes a downturn.
Diversification can sometimes lead to the investor purchasing riskier stock, due to the fact that
they may have low risk stocks to balance the riskiness of their investments.
In the NIV Bible, Ecclesiastes 11:2 states “Invest in seven ventures, yes, in eight;
you do not know what disaster may come upon the land”. Although this does not specifically
mention the diversification of stocks, we can take note from this verse. In the verse, it states to
invest in multiple, seven or eight, ventures to avoid the disaster that may arise from putting all
capital into one venture. In the terms that the Bible was referring to, it is important to have
multiple ships carrying multiple different products. This helps to avoid losing everything if one
of your ships sunk, which is what would happen without diversification. In terms of stocks, when
we take a look at this verse, it can be interpreted in a very similar manner. The more diversified
stock that is invested in, the more likely the investor is to avoid losing a lot of money if one
company’s stock crashes.
3
Making A Budget
Whether it is in your personal life or a business, it is financially important to make a
budget on how funds will be spent. During this class, we focused on budgets of businesses. In
business, this involves any expenses needed in the operations of the business. Making a budget
for the business will allow for the business to prevent misallocation of funds. According to Banks
(2018), a business that does not create a budget may not be able to reach their long-term goals as
timely as a business that has created and sticks to a budget. These long-term goals can include
purchasing a new building or equipment needed to help the business grow.
In the NIV Bible, Luke 14:28-30 states “Suppose one of you wants to build a tower.
Won’t you first sit down and estimate the cost to see if you have enough money to complete it?
For if you lay the foundation and are not able to finish it, everyone who sees it will ridicule you,
saying, ‘This person began to build and wasn’t able to finish’”. This verse explains the
importance of making a budget, whether in your personal life or business. If you do not budget
how your money, or revenue, is spent, you may not have enough to pay all your bills or make
intended big purchases. As the Bible states with this verse, making a budget prevents an
individual or business from being ridiculed.
Debt
In this course, we have studied debt as well as what companies have to do to eliminate
this debt. The less debt the company or business has, the better off the company is. Even when a
company takes on debt in the hopes to have the revenue increased, the company must take the
amount of debt that will be created into consideration. The goal of the company is to have the
least amount of debt that could be possible. Debt is almost inevitable for companies, especially
when the company is just starting. Although it is difficult to avoid debt, it is important to only
4
have needed debt that helps to bring in more money than it cost.
In the NIV Bible, Proverbs 22:7 states “The rich rule over the poor, and the borrower is
slave to the lender”. This verse explains the relationship between those who borrow money and
those who lend the money. Until the loan or debt is paid off, the borrower will be in debt to the
lender. Most companies are able to properly manage this relationship in order to be able to still
strive while owing the lender. In this case, it is important to note that even though the company is
striving, they still have to continuously pay the lender until there is no more debt. However, there
are some companies that take on too much debt that they end up not being able to continue to
operate. In this case, the owner of the business has to liquidate all assets in order to pay off what
was borrowed.
Patience While Investing
In this course, we studied the benefits of patiently waiting on the returns of investing. The
patience that is needed to truly benefit the investor, is sometimes overlooked in the hopes of
quick profit. The patience is needed to create long term profit as well as long term sustainability.
According to Lake (2018), younger investors tend to be more impatient than investors in the
previous generations. This aligns with the perspectives that most individuals have on the younger
generation, that they want instant results.
In the NIV Bible, Proverbs 21:5 states “The plans of the diligent lead to profit
as surely as haste leads to poverty”. This verse explains that those who wait will be more
profitable than those that are rushed. This verse remains true for many situations in life, whether
or not the situation deals with money. There is also a famous saying that “good things come to
those who wait”. This saying is very similar to the Bible verse, in that patience is key. Patience in
life as well as investing can lead to the best possible results.
5
References
Banks, K. (2018, February 28). The Importance of Budgeting in Business: WLF Accounting &
Advisory. Retrieved from https://wlf.com.au/importance-budgeting-business/
Lake, R. (2018, January 2). Patience Is Your Biggest Investment Asset. Retrieved from
https://money.usnews.com/investing/buy-and-hold-strategy/articles/2018-01-02/patience-
is-your-biggest-investment-asset
New International Version. (2011). BibleGateway.com.
www.biblegateway.com/versions/New-International-Version-NIV-Bible/#booklist
