Define finance and the managerial finance function.

Finance is the science

and art of managing money. It affects virtually all aspects of business. Managerial
finance is concerned with the duties of the financial manager working in a business.
Financial managers administer the financial affairs of all types of business private
and public, large and small, profit seeking and not for profit. They perform such
varied tasks as developing a financial plan or budget, extending credit to
customers, evaluating proposed large expenditures, and raising money to fund the
firms operations.
Describe the legal forms of business organization. The legal forms of business
organization are the sole proprietorship, the partnership, and the corporation. The
corporation is dominant in terms of business receipts, and its owners are its
common and preferred stockholders. Stockholders expect to earn a return by
receiving dividends or by realizing gains through increases in share.
Describe the goal of the firm, and explain why maximizing the value of the
firm is an appropriate goal for a business. The goal of the firm is to maximize
its value and therefore the wealth of its shareholders. Maximizing the value of the
firm means running the business in the interest of those who own it the
shareholders. Because shareholders are paid after other stakeholders, it is generally
necessary to satisfy the interest of other stakeholders to enrich shareholders.
Describe how the managerial