IDENTIFYING FINANCIAL PRINCIPLES

This assignment requires YOU to demonstrate your UNDERSTANDING about FINANCIAL PRINCIPLES* for businesses.

Select any ONE LISTED company/corporation;

Find out INFORMATION about Financial Activities of the selected company;

Select ONE (already made) FINANCIAL DECISION of the selected company.

Section A: 30 marks

You are required to DESCRIBE How a financial decision is made.

Give your descriptions about the selected financial decision:

The statement of the financial decision

The financial decision type/area

The goal/objective of the financial decision

The factors/circumstances of the financial decision.

Section B: 55 marks

You are required to EXPLAIN What financial principles are applied in financial decision making.

Provide your explanations about financial principles applied in the selected financial decision. For each of at least 3 the most specific financial principles:

The statement of the financial principle

The reasoning of the financial principle

Your arguments proofed by Facts & Figures.

Section C: 15 marks

You are required to COMMENT about already made financial decision

Give your comments about the selected financial decision

Try to propose your alternatives to already made financial decision, persuade that your alternative may be the best financial decision possible.

FINANCIAL PRINCIPLES* (included but not limited to)

Value Maximization

Return and Risk Trade-off

Cash is King

Time Value of Money

Competitiveness

Agency-Principal (Other People Money)

Tax Consideration