What are the four main areas of finance? Give a brief definition of each
What will be an ideal response?
Answer: The four main areas of finance are corporate finance, investments, financial institutions and markets, and international finance. Corporate finance deals with the financial operations of the firm and focuses on capital budgeting, capital structure, and working capital management. It is the primary focus of this text. Investments focuses on the activities associated with the buying, selling, pricing, and risk evaluation of financial assets. It is commonly the part of finance most interesting to students. Financial institutions and markets is the study of the firms and organizations that facilitate and regulate the trading of financial assets as well as the markets that make the trading possible. International finance deals with the multinational aspects of the other three areas of finance. Decision-making in the international arena is complicated by language differences, currency differences, taxation issues and differences in local and national laws. An expertise in international finance is a valuable asset to firms that have business dealings that span more than one country.
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During which step of the needs-based segmentation process would the marketer group customers into segments based on similar needs and benefits sought by the customer in solving a particular consumption problem?
A) Step 2–segment identification B) Step 3–segment attractiveness C) Step 6–segment "acid test" D) Step 1–needs-based segmentation E) Step 7–marketing-mix strategy
On January 1, 20X2, Pint Corporation acquired 80 percent of Size Corporation for $200,000 cash. Size reported net income of $25,000 each year and dividends of $5,000 each year for 20X2, 20X3, and 20X4. On January 1, 20X2, Size reported common stock outstanding of $160,000 and retained earnings of $40,000, and the fair value of the noncontrolling interest was $50,000. It held land with a book value of $90,000 and a market value of $100,000, and equipment with a book value of $40,000 and a market value of $48,000 at the date of combination. The remainder of the differential at acquisition was attributable to an increase in the value of patents, which had a remaining useful life of eight years. All depreciable assets held by Size at the date of acquisition had a remaining economic life of
eight years. Pint uses the equity method in accounting for its investment in Size.Based on the preceding information, the increase in the fair value of patents held by Size is A. $18,000 B. $32,000 C. $10,000 D. $50,000
Cash investments by owners increase both equity and assets
Indicate whether the statement is true or false
Seaside Cannery, Inc., is one of many producers of canned seafood. Seaside refuses to sell its products to Port Harbor Restaurant Corporation. Under antitrust law, this refusal is most likely
A. a per se violation. B. a violation if its competitors make similar deals. C. a violation if it thereby acquires monopoly power. D. not a violation.