EMNF2724

(Use with chapter in textbook and study guide)

ANDREA MEYER
Guidance on tackling Chapter 1
• This chapter is simply put the foundation for the rest of the chapters -
it builds the picture for the module and how each chapter fits in.
• Do not underestimate this chapter because there's no calculations.
• The theory laid out in this chapter is fundamental for EMNF2724.
• This chapter helps you answer the why behind every calculation in
EMNF2724. For example making sure investments are worthwhile can
be linked to appraising investments, ensuring the procurement of
various types of capital can be linked to a number of chapters.
• Use the chapter outcomes as listed in your study guide and at the
beginning of the chapter for a framework of what to
know/summarize/study from this chapter. (Outcomes given on next
slide as well)
• Please ensure you work through the chapter. My advice would be to
go through this chapter once and do a proper summary. We tend to
waste time by doing something half and then needing to redo it every
single time we study. Save yourself that.
 Learning Unit Outcomes:
1. Define what Financial Management is;
2. Explain and reflect on the meaning of the terms ‘corporate finance’ and ‘financial
management’;
3. Explain the role and responsibilities of the financial manager;
4. Discuss three types of financial-management decisions and identify the main goals of
financial management;
5. Describe the different corporate forms of business that can operate in South Africa;
6. Discuss the agency problem and agency costs;
7. Understand the functions of financial markets and institutions; and
8. Explain the role of business ethics and corporate governance in the field of financial
management
 Homework Questions: Where to find?

- Under LU1 in study guide

Question 1.1 – 1.11
- Will also be uploaded separately

Question 5, 6 and 7 - In prescribed textbook under longer question

(intermediate)

Please ensure you work through the chapter.

This is a theory chapter and you need to sit done and work through it.