ABSTRACT

This chapter discusses the role of nance, valuation, and investment in the media economy. Any business activity operating with a pro t incentive must be concerned about these topics. “Finance” is a broadbased term used to represent the management of money and capital, and how owners and managers monitor the overall nancial condition of the business enterprise. If the enterprise is a corporation, this is usually referred to as corporate nance. Valuation is concerned primarily by understanding how much a business is worth, or its overall value in the marketplace. Valuation can look at the entire business entity or focus on one particular segment. Valuation has many uses, ranging from the fair market value of a company to potential mergers and acquisitions to tax liability. Investment represents a set of decisions that companies make with the intent of seeing their business enterprise grow and appreciate. Investment is concerned with ensuring the long-term future of the enterprise, and can encompass many activities from retaining earnings to acquiring new assets. Given this brief introduction to the chapter, we

begin our examination of these topics with a look at the role of nance as part of the overall nancial management of a business enterprise.