BUSF_A01.qxd

...

Introduction In this chapter we shall deal with the following: ‘the role of business finance ‘the importance of the consideratio ...

Chapter 1 • Introduction 1.1 The role of business finance Businesses are, in effect, investment agencies or intermediaries. This ...

Risk and business finance 1.2 Risk and business finance All decision making involves the future. We can only make decisions abou ...

Chapter 1 • Introduction 1.3 The relationship between business finance and accounting Business finance and accounting are not th ...

The organisation of businesses – the limited company More particularly, the aim is to explain in broad terms those aspects that ...

Chapter 1 • Introduction Since it can continue irrespective of precisely who the shareholders happen to be at any given moment, ...

Corporate governance and the role of directors them, can wield tremendous power. The board of directors is the company’s top lev ...

Chapter 1 • Introduction Where directors pursue their own interests at the expense of the shareholders, there is clearly a probl ...

Corporate governance and the role of directors Although only just over one-fifth of shares are held directly by individual mem- ...

Chapter 1 • Introduction concerned with the role of ‘non-executive’ directors. Non-executive directors do not work full time in ...

Long-term financing of companies to the shareholders in the form of a cash dividend. The amount that each shareholder receives i ...

Chapter 1 • Introduction Borrowings Most companies borrow funds on a long-term, occasionally on a perpetual, basis. Costain Grou ...

Derivatives only partially) the claims of the creditors. This type of liquidation is sometimes referred to colloquially as bankr ...

Chapter 1 • Introduction time is above the exercise price specified in the option contract, the exporter will ignore the option ...

Summary the shares to be totally held by the fund and ‘delisted’. This means that the shares are no longer available to the publ ...

Chapter 1 • Introduction Private equity funds lFunds pooled privately by large investors. lFunds often used to buy listed busine ...

A framework for financial decision making In this chapter we shall deal with the following: ‘the steps in financial decision mak ...

Chapter 2 • A framework for financial decision making Relevant and irrelevant costs Tariq Ltd is a business that owns a machine ...

Business objectives of making the decision. Also, the presence of irrelevant information can confuse deci- sion makers, leading ...