Question

• Rate the three most important concepts that you learned in Financial Management (FIN-534) course in order of importance. Provide a rationale for your ratings. Propose two applications of knowledge that you have learned in this course to your current or a future position.

Answer 1

The three important things are as follows :

1) Ethical behavior overall and how it would apply to corporate finance.

2) The time value of money concept.

3) The forecasting methods to assist in make future business decisions.

My concept in the business world, especially when it relates to running the finance side of the business, is that "fish usually stinks at the head". Meaning that if your top executives are not running the business ethically, then you will have problems. If there are problems everything else will eventually fail.

Applications are as follows :

The two applications of knowledge that I have learned in this course that can be proposed to my current or a future position would be capital budgeting approach and the NPV method. I would incorporate using the capital budgeting approach by working this approach during the appraisal of different alternatives to select best project in order to start a new business or renew /revamp a business. Additionally, I would apply the NPV method to determine that the proposed business will be beneficial for me or not in future. The determination of financial likelihood of proposed investment will prove to bethe most valuable thing. A person who is not in the financial profession can use all these concepts that I have learned by taking a training class in financial management. Along with this, by learning the basics from financial experts, a person who is not in the financial profession would take these concepts in their business practices, such as investing in a company or one’s own future.