BUS-101 Chapter Notes - Chapter 10: Cash Flow, Startup Company, Investment

• School: University of Tampa
• Department: Business
• Course: BUS-101
• Professor: John Caslione

Document Summary

Financial management: work within organizations of all types, including for-profit, nonprofit and governmental entities. Financial institutions: firms that specialize in financial products. Investments and securities: this area of finance encompasses careers related to the securities market (i. e. stocks and bonds) and the investment activities of individuals, firms and other organizations. Their role is to manage the organization"s financial resources. Financial professionals working in the investment field could be investment advisors, stockbrokers and securities analysts. Risk vs. return: investors and lenders usually demand higher earnings or a higher interest rate to be compensated for incurring additional risk. The riskier a decision, the higher possible return if all goes well. Time value of money: individuals usually prefer to have good things sooner and prefer to put off bad things until later. Ex: investors demand a premium in exchange for waiting to get their money later, and borrowers are willing to pay an additional amount to postpone making the payment until later.