Finance is the study of the allocation of financial (scarce) resources to maximize their utilities. Since the allocation is subject to uncertainties, tools and skills are employed to weigh the costs and benefits of the decisions.
If you were to start your business, what type of questions do you need to ask yourself?
What products to produce or sell? What kind of buildings, furniture, machines to buy? How to finance (to get the money)? Should I borrow or take partners?
How to manage daily activities, to collect from customers and pay suppliers?
These are some of the most important questions you need to answer and they are related to the management of money.
The goal of finance will continue to be value maximization, and twoemerging trends will become increasingly important: the globalization of business (security analyst) and the use of information technology.