ABSTRACT
In this chapter we will consider the basic definitions and concepts of the financial world, the meaning and scope of finance, and how it impacts daily activities. We will then consider the goals of finance, which center on how a firm maximizes value, ensures proper liquidity and solvency, and manages risks. With this background in hand we will then discuss the financial process, a cycle based on financial reporting, planning, and decision-making, and consider how market factors can impact the cycle. We will conclude with a brief overview of the book, describing in general terms the concepts/tools, instruments/transactions, and markets/ participants discussed in subsequent chapters.
