BUSF_A01.qxd

Introduction

In this chapter we shall deal with the following:

‘the role of business finance

‘the importance of the consideration of risk in financial decision making

‘the relationship between business finance and other disciplines, particularly

accounting

‘the importance of the limited company as the legal form in which most UK

businesses exist

‘the nature of the limited company

‘what is meant by limited liability

‘the formation of limited companies

‘the requirement for businesses trading as limited companies to signal the

fact to the world through the company name

‘directors and their relationship with shareholders

‘the duty of directors to account for their actions

‘the way in which companies are managed

‘corporate governance

‘typical means of financing companies and the rights of suppliers of

corporate finance

‘liquidation of companies

‘the nature of derivatives

‘private equity funds

Chapter 1

Objectives