► Explain the Concept of Money 

Money is anything that is acceptable as  payment for goods and services .

► Definition and Characteristics of Money  

Scarcity

Durability

Portability

Divisibility
► Define Finance and Identify the Difference between Finance and Accounting 
Accounting is more about accurate reporting of  what has already happened
and compliance with  laws and standards vs Finance is about looking
forward and growing a pot  of money or mitigating losses. 

► State Individual Financial Goals and Goals of A Firm  

Individual Financial Goals:

➢ Paying off Debt 

➢ Buying a home 

➢ Saving for Retirement 

➢ Building an Emergency Fund 

➢ Saving for Vacation 

➢ Starting a Business 

➢ Feeling Financially Secure

► Financial markets  

✓ Profit Targets 
✓ Projected Borrowing Requirements 

✓ Covering Operating Expenses 

✓ Developing Debt Payback Schedule.

► Explain The Role of the Financial Manager  

Financial Management 

The art and science of managing a firm’s money so that it can  meet its goals.  

This is not only the responsibility of the finance department . 

All business decisions have financial consequences. 

Managers in all departments must work closely with financial  personnel

► Discuss Business Entities and Financing  

► Define Financial Planning  

► State the Objectives of Financial Planning 

► State the Importance of Financial Planning  

► Identify Legal Forms of Business Organization: strengths and weaknesses  

Financial Planning 

Definition 

Financial Planning is the process of estimating the  capital required and

determining it’s competition. 

It is the process of framing financial policies in  relation to procurement ,investment and  administration

of funds of an enterprise.

Objectives of Financial Planning 

1. Determining Capital Requirements 

2. Determining Capital Structure 

3. Framing Financial Policies 

4. Ensuring that the scarce financial resources are  utilized in the best
possible manner at least cost in  order to get maximum returns on
investment. 

Importance of Financial Planning 

1. Ensuring adequate funds 

2. Ensuring that the suppliers of funds are easily investing  in companies

which exercise financial planning. 

3. Helps in making growth and expansion programmes which helps in the

long-run survival of the company 

4. Reduces uncertainties with regards to changing  market trends

which can be faced easily through  enough funds. 

5. Helps to reduce uncertainties which can be a  

hindrance to the growth of the company. This helps in  ensuring stability and
profitability. 

Legal Forms of Businesses 

There are different types of businesses with different  financing

requirements.

► Identify the different sources of Funds  

► Explain Financial Markets and the Flow of Funds in Financial Markets  

There are two basic types of partnerships, general and  limited
partnerships: 

In general partnerships: 

► all partners have unlimited liability.  

► They share in the management and profits. 

► They co-own the assets and each can act on  

behalf of the firm. 
► In limited partnerships, creditors cannot go after the  personal assets of the limited partners.

Short term Expenses 

► Often called operating expenses are outlays

used to  support current selling and production
activities 

Long term Expenditure 

► A firm uses funds for its investments in long-lived assets,  such items as land, building, machinery,

equipment and  information systems. This is called Capital Expenditure .