October 25 th : custom select the financial environment. An effective financial system must have policy makers, a monetary system, financial institutions and financial markets. Money: anything that is generally accepted as payment. Three basic functions: medium of exchange, store of value, standard of value. Corporate governance: many definitions, but shareholders define it as what a company should and shouldn"t do. : to create and enhance sustainable and enduring shareholder value while protecting the interests of other shareholders. Principles: official, fairness, transparency, accountability, responsibility, and others (the ones from the powerpoint), honesty, resilience, responsiveness, transparency, should be based on the following principles, value-adding philosophy, ethical conduct, accountability, shareholder democracy and fairness. Functions: oversight function (of bod, managerial function, compliance function. Internal audit function: legal and financial advisory function, external audit function, monitoring function (of shareholders) Three most important are oversight, managerial, and monitoring. Designed to manage, direct, and monitor corporate activities in order to create sustainable stakeholder value.