Fundamentals of Finance Assignment 1

Assessment 1

Respond to the following five questions. Write your responses in a Word

document, and number them 1

–

5.

1.

Define the terms

finance

and

financial

management

. What are the major sub

-

areas

of finance?

2.

Identify and define the three basic forms of business ownership. Describe the

advantages and disadvantages of each.

3.

Define the terms

agency

relationship

and

agency

problem

. Explain three different

approaches to minimizing the agency problem.

4.

Explain why et

hical behavior is so important in the field of finance.

5.

Explain the concept of shareholder wealth maximization. Is there a conflict between

the goal of shareholder wealth maximization and the financial manager's need to act

in an ethical manner? Why or why

not?

Use references to support your answers as needed. Be sure to cite all references

using correct APA style. Your responses should be free of grammar and spelling

errors, demonstrating strong written communication skills

Assessment 1

Respond to the following five questions. Write your responses in a Word

document, and number them 1–5.

1. Define the terms finance and financial management. What are the major sub-areas

of finance?

2. Identify and define the three basic forms of business ownership. Describe the

advantages and disadvantages of each.

3. Define the terms agency relationship and agency problem. Explain three different

approaches to minimizing the agency problem.

4. Explain why ethical behavior is so important in the field of finance.

5. Explain the concept of shareholder wealth maximization. Is there a conflict between

the goal of shareholder wealth maximization and the financial manager's need to act

in an ethical manner? Why or why not?

Use references to support your answers as needed. Be sure to cite all references

using correct APA style. Your responses should be free of grammar and spelling

errors, demonstrating strong written communication skills