Lesson 1

• Passbook


  A type of savings account
• Finance


  The science and art of managing money
• Budgeting


  The act of estimating revenue and expenses over a period
• Investment


  Comes in many forms that will generate income or appreciate income in the future
• A profitable company is not necessarily a successful company
• Sound financial management


  Deals with decisions that are supposed to maximize the value of shareholders' wealth
• The goal of financial management is to maximize the value of shares and stocks
• Financial Managers


  Responsible for carrying out the objectives of the shareholders
• Shareholders elect the Board of Directors (BOD). Each share held is equal to one voting right
• The BOD's responsibility is to carry out the objectives of the shareholders otherwise, they will not be elected in that position
• Excess money


  presents an opportunity for investments.