What investment choices do you have for Tk 100,000 for 5 years?
Options may include savings accounts, fixed deposits, mutual funds, stocks, or bonds.
What factors should you consider when choosing an investment for Tk 100,000?
Consider risk tolerance, potential returns, liquidity, investment duration, and financial goals.
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p.2
Investment and Financing Decisions

What investment choices do you have for Tk 100,000 for 5 years?

Options may include savings accounts, fixed deposits, mutual funds, stocks, or bonds.

p.2
Investment and Financing Decisions

What factors should you consider when choosing an investment for Tk 100,000?

Consider risk tolerance, potential returns, liquidity, investment duration, and financial goals.

p.2
Investment and Financing Decisions

What are your choices if you need Tk 100,000 for tuition fees?

Options may include personal loans, scholarships, part-time work, or borrowing from family.

p.2
Investment and Financing Decisions

What factors should you consider when choosing how to obtain Tk 100,000 for tuition?

Consider interest rates, repayment terms, eligibility for scholarships, and impact on future finances.

p.3
Overview of Finance

What is finance?

The art and science of managing money.

p.3
Financial Management Functions

What processes are involved in finance?

Fund transfer and redistribution processes involving instruments, platforms, infrastructure, institutions, and people.

p.5
Investment and Financing Decisions

What is preferred when making financial decisions?

More return is preferred to less.

p.7
Interrelationships with Other Business Fields

In what way does finance interact with management?

Finance supports management in budgeting, forecasting, and strategic planning.

p.3
Types of Financial Institutions

Who are the key participants in the finance process?

Entrepreneurs, investors, managers, dealers, regulators, and more.

p.10
Corporate Social Responsibility (CSR)

What is management's primary objective in relation to stakeholders?

To maximize shareholders' wealth while considering the wellbeing of other stakeholders.

p.7
Interrelationships with Other Business Fields

What role does finance play in operations and supply chain management?

Finance helps in budgeting and cost analysis for efficient operations and supply chain decisions.

p.10
Corporate Social Responsibility (CSR)

What must financial decision-making strive for?

Sustainable development that benefits society at large.

p.8
Types of Financial Institutions

What are private equity funds?

Investment funds where a small number of investors typically own virtually all shares in a firm.

p.7
Interrelationships with Other Business Fields

What is the connection between finance and accounting?

Finance relies on accounting data to assess financial health and performance.

p.9
International Conditions Affecting Finance

What does exchange rate risk refer to?

The value of a non-native currency denominated investment depends on changes in the exchange rate.

p.7
Interrelationships with Other Business Fields

How does finance influence marketing and entrepreneurship?

Finance provides the necessary funding and financial analysis for marketing strategies and new ventures.

p.7
Interrelationships with Other Business Fields

How does finance relate to economics?

Finance uses economic principles to analyze markets and make investment decisions.

p.4
Financial Management Functions

What is the primary objective of financial management?

The value maximization objective of the corporation.

p.10
Corporate Social Responsibility (CSR)

How do actions that maximize stock values benefit society?

They can lead to high-quality goods and services at reasonable prices, benefiting consumers.

p.7
Interrelationships with Other Business Fields

How is finance related to information systems and technology?

Finance utilizes information systems for data analysis, reporting, and decision-making.

p.8
Types of Financial Institutions

What are mutual funds?

Investment funds that pool money from many investors to purchase a diversified portfolio of securities.

p.9
International Conditions Affecting Finance

What is country risk?

The risk that arises from investing or doing business in a particular country, depending on its economic, political, and social environment.

p.9
International Conditions Affecting Finance

What factors affect exchange rates?

International trade deficits/surpluses, relative inflation and interest rates, and relative growth rates.

p.4
Agency Conflict in Finance

What is an agency conflict in finance?

A conflict of interest between stakeholders, typically between management and shareholders.

p.8
Types of Financial Institutions

What characterizes hedge funds?

They involve a small number of large investors investing in a wide range of securities, including derivatives.

p.4
Financial Management Functions

What are the two major functions of financial management?

Investment decisions and financing decisions.

p.3
Ethics in Finance

How is finance influenced by human behavior?

It is shaped by human sentiments, attitudes, and behaviors, including rational and irrational actions.

p.4
Corporate Governance

What is corporate governance?

The system by which companies are directed and controlled, focusing on the relationships among stakeholders.

p.6
Major Fields of Finance

What does Financial Management encompass?

Managerial or corporate finance activities focused on maximizing shareholder value.

p.10
Corporate Social Responsibility (CSR)

What constraints affect pricing in firms that maximize stockholder value?

Competition and consumer activism.

p.11
Agency Conflict in Finance

What is the agency problem?

The potential conflict of interest between owners/shareholders and managers.

p.5
Investment and Financing Decisions

What is the value of receiving cash sooner?

The sooner cash is received, the more valuable it is.

p.11
Agency Conflict in Finance

What is one threat that can help mitigate the agency problem?

The threat of takeover.

p.10
Corporate Social Responsibility (CSR)

Why is it difficult for firms to maximize share price?

Because they must also consider the wellbeing of other stakeholders.

p.5
Financial Management Functions

Why is sound financial decision-making essential?

It is essential at both individual and collective levels, including businesses and the macro-economy.

p.11
Agency Conflict in Finance

How can appropriate compensation help mitigate the agency problem?

By tying managerial compensation packages to stock price.

p.5
Investment and Financing Decisions

What type of assets are preferred in financial decision-making?

Less risky assets are preferred to riskier assets.

p.11
Agency Conflict in Finance

What is the agency conflict in finance?

The conflict between managers and stockholders where managers act in their own best interest.

p.6
Major Fields of Finance

What is Personal Finance?

The management of individual or household financial activities.

p.6
Major Fields of Finance

What is the focus of Investments and Behavioral Finance?

The study of how psychological factors affect investment decisions.

p.8
Types of Financial Institutions

What are Exchange Traded Funds (ETFs)?

Investment funds that are traded on stock exchanges, similar to individual stocks.

p.11
Agency Conflict in Finance

What role do major shareholders play in mitigating the agency problem?

They can directly intervene to align interests.

p.3
Overview of Finance

Why does everyone care about finance?

Because all entities earn/raise and spend/invest money and want to enhance utilities/welfare.

p.8
Types of Financial Institutions

What are commercial banks?

Financial institutions that provide a range of banking services to individuals and businesses.

p.8
Types of Financial Institutions

What role do life insurance companies play in finance?

They provide financial protection and investment options through life insurance policies.

p.11
Agency Conflict in Finance

What is the principal-agent relation?

The relationship where the principal (owners/shareholders) and agent (managers) may have conflicting interests.

p.5
Ethics in Finance

Why is ethics important in finance?

Ethics is critical in finance, as in life.

p.6
Major Fields of Finance

What is International Finance?

The study of financial transactions that occur across international borders.

p.6
Major Fields of Finance

What are Financial Markets and Institutions?

Platforms and entities that facilitate the exchange of financial assets and services.

p.10
Corporate Social Responsibility (CSR)

How does maximizing stock value affect employee benefits?

Employment growth is higher in firms that focus on maximizing stock value, helping to attract, develop, and retain employees.

p.4
Ethics in Finance

What are some ethical issues faced by finance professionals?

Conflicts of interest, insider trading, and transparency in financial reporting.

p.8
Types of Financial Institutions

What are pension funds?

Investment pools that collect and invest money to provide retirement income for employees.

p.10
Corporate Social Responsibility (CSR)

What is the relationship between stockholder value and consumer benefits?

Firms that maximize stockholder value must produce high-quality goods at the lowest cost, benefiting consumers.

p.6
Major Fields of Finance

What do Financial Derivatives and Engineering involve?

The use of financial instruments to manage risk and enhance returns.

p.4
Corporate Social Responsibility (CSR)

What does Corporate Social Responsibility (CSR) entail?

The responsibility of corporations to consider the social and environmental impacts of their business decisions.

p.8
Types of Financial Institutions

What do investment banks specialize in?

Raising and managing capital, providing advisory services, underwriting, M&A consulting, and wealth management.

Study Smarter, Not Harder
Study Smarter, Not Harder