This assignment will familiarize you with various terms used in finance and financial management. After completing this assignment, you will understand:
- The role of a finance manager in an organization.
- The finance manager’s goals and objectives.
- The challenges faced by a finance manager on a daily basis.
- Why ethical behavior is so important in this field.
Complete the following problems and answer the following questions, as applicable:
- Question 1:
- Proficient-level: Define the terms finance and financial management, and identify the major sub-areas of finance.
- Distinguished-level: Describe the nature of risk.
- Question 2:
- Proficient-level: “What are the three basic forms of business ownership? What are the advantages and disadvantages to each?” (Cornett, Adair, & Nofsinger, 2016, p. 21).
- Distinguished-level: Discuss the advantages and disadvantages of each of the three basic forms of business ownership to access capital.
- Question 3:
- Proficient-level: Define the terms agency relationship and agency problem, and list the three approaches to minimize the conflict of interest resulting from the agency problem.
- Distinguished-level: Describe the role of corporate governance.
- Question 4:
- Proficient-level: “Why is ethical behavior so important in the field of finance?” (Cornett, Adair, & Nofsinger, 2016, p. 21).
- Distinguished-level: Provide examples of financial scandals.
- Question 5:
- Proficient-level: “Does the goal of shareholder wealth maximization conflict with behaving ethically? Explain” (Cornett, Adair, & Nofsinger, 2016, p. 21).
- Distinguished-level: Explain the meaning of Adam Smith’s term, invisible hand.
Write your responses in a Microsoft Word document and submit it as an attachment in the assignment area. Prior to submitting your assignment, review the Introduction to Financial Management Scoring Guide to ensure you have met all of the requirements and as a self-assessment of your work.