Part five

Finance

Finance provides a common language and set of tools that help managers and the owners of capital understand each other. Managers need access to money to help their business grow, and they have to make difficult choices about the forms of financing they use. Business owners (whether public shareholders or private funds) are seeking a return on the money they provide and a clear understanding of the risks involved.

Of all the subjects in this book, finance has the potential to be the most confusing due to the many technical terms being used. Once you start reading through this section, you will find that much of finance, at least at this level, relies on basic arithmetic. Moreover, learning to interpret the results of financial ...

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