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      WELCOME_OBA3105_INTRODUCTION TO FINANCE_BBAIB_ODL

      This is Introduction to Finance OBA 3105, a core subject in Bachelor of Business Administration in International Business (BBAIB)_ODL

      DESCRIPTION OF THE COURSE

      This module is designed to provide students with a strong foundation in finance that allows them to understand and apply the concepts in the world of finance as well as to focus their attention to certain issues they can further explore. which applicable for both in personal and managerial finance. At the end of the course, students can recognize relationship between finance and other business disciplines, as well as to be able to use synergy of those disciplines in decision making.

      AIM OF THE COURSE

      The overall aim of the module is to give students an exposure to the basic business finance theory both quantitative and qualitative with some simple applications.

      • Specific topics covered will include time value of money, the role of the financial markets in company financing, the nature and role of financial instruments, sources of financial information, evaluation of proposed capital expenditure, and cost of capital and the returns to providers of finance.
      • This is an introduction to the fundamental concepts of business finance. The students will be exposed to the time value of money concept, the assets evaluation, the capital budgeting, the capital structure, and the cost of capital, and working capital management.

      COURSE LEARNING OUTCOME

      At the end of the course the students will be able to:

      • Discuss the principles of finance and the roles of financial market that underline the finance discipline.(C2, PLO1)
      • Demonstrate the concept of time value of money and various decision making techniques in financial planning. (C3,PLO8)
      • Calculate the value of bonds and stock in a market place (C3,PLO8)

      SUPPORT AND CONTACT DETAILS

      • Name: Mimi Suriaty Binti Haji Abdul Rani
      • Email : msuriaty@nilai.edu.my
      • Consultation Hours: Wednesday (08:00 am – 10:00 am) and Thursday (08:00 am – 10:00 am


      Lecturer Image
◄ICE BREAKING SESSION_OBA3105_Introduction to FinanceChapter 2 – Introduction to Islamic Finance►

Chapter 1 : Introduction to Finance

  • Chapter 1 : Introduction to Finance

    LESSON 1: INTRODUCTION TO FINANCE

    WEEK 1 (Lecture) and (Tutorial)

    SYNOPSIS / OVERVIEW

    Lesson 1 introduces to the basic concepts needed to understand the financial manager’s decision-making process. To achieve that, student will learn about the basic forms a business can take and the goal of the financial manager. At the end of the Lesson 1 students can develop an understanding of the issue’s managers must consider when making financial decisions.

    Here are the main topics to be covered in Lesson 1 (Week 2):

    • Definition of Finance
    • Four (4) basics area of Finance
    • Importance of Finance
    • Financial manager
    • Financial management decisions
    • Form of business organizations
    • Financial market

    LEARNING OUTCOMES

    By the end of this lesson, student should be able to:

    • Explain the basic types of financial management decisions and the role of the financial manager.
    • Describe the financial implications of the different forms of business organization.
    • Discuss the goal of financial management.

    REQUIRED READINGS

    Chapter 1: Introduction of Finance

    Titman, Keown, A. J. and Martin, J.D. (2018). Financial Management, (13th ed). Principles and Applications, Pearson Education.


    • OBA3105_INTRODUCTION TO FINANCE_NOTE 1_CHAPTER 1 File

      CHAPTER 1 INTRODUCTION TO FINANCE

      KEY CONCEPTS AND SKILLS

      • Know the basic types of financial management decisions and the role of the financial manager.
      • Know the financial implications of the different forms of business organization.
      • Know the goal of financial management.


    • OBA3105_INTRODUCTION TO FINANCE_VIDEO_CHAPTER 1 File

      CHAPTER 1 : INTRODUCTION TO FINANCE


    • SELF CHECK 1.1 : Online Discussion Forum
      View

      Once completed view the video. Let's discuss!

      1. The goal of Financial Management. What goal should always motivate the actions of the firm's financial manager?
      2. Agency Problems. Who owns a corporation? 
      3. Describe the process whereby the owners control the firm's management. 
      4. What is the main reason that an agency relationship exists in the corporate form of organization? In this context, what kinds of problems can arise?



    • SELF CHECK 1.2 Assignment
      Opened: Sunday, 30 October 2022, 12:00 AM
      Due: Sunday, 6 November 2022, 12:00 AM
      View

      TRUE/FALSE

      1. The valuation Principle shows how to make the costs and benefits of a decision comparable so that we can  evaluate them properly. (T/F)
      2. Partnerships are the most common type of business firm in the world. (T/F)
      3. Financial decisions require that you weigh alternatives in strictly monetary terms.(T/F)
      4. Corporations have come to dominate the business world through their ability to raise large amounts of capital by the sale of ownership shares to anonymous outside investors.(T/F)



    • SELF CHECK 1.3 _TUTORIAL (1) Assignment
      Opened: Sunday, 30 October 2022, 12:00 AM
      Due: Sunday, 6 November 2022, 12:00 AM
      View
      TUTORIAL_1

      1. Goal of Financial Management. What goal should always motivate the actions of the firm's financial manager?
      2. Agency Problems. Who owns a corporation? Describe the process whereby the owners control the firm's management. What is the main reason that an agency relationship exists in the corporate form of organization? In this context, what kinds of problems can arise?
      3. Primary versus Secondary Markets. You have probably noticed coverage in the financial press of an initial public offering (IPO) of a company's securities. Web search company Google is a relatively recent example. Is an IPO a primary-market transaction or a secondary-market transaction?
      4. Ethics and Firm Goals. Can our goal of maximizing the value of the stock conflict with other goals, such as avoiding unethical or illegal behavior? Do you think subjects such as customer and employee safety, the environment, and the general good of society fit in this framework, or are they essentially ignored? Try to think of some specific scenarios to illustrate your answer.
      5. International Firm Goal. Would our goal of maximizing the value of the stock be different if we were thinking about financial management in a foreign country? Why or why not?
      6. Agency Problems and Corporate Ownership. Corporate ownership varies around the world. Historically, individuals have owned most shares in public corporations in the United States. In Germany and Japan, however, banks, other large financial institutions, and other companies own most of the stock in public corporations. Do you think agency problems are likely to be severe in Germany and Japan than in the United States? Why? In recent years, large financial institutions such as mutual funds and pension funds have been becoming the dominant owners of stock in the United States, and these institutions are becoming more active in corporate affairs. What are the implications of this trend for agency problems and corporate control?



    • 1.4 POINTS TO PONDER / TAKEAWAY Lesson

      The Financial Management Decision Process.

      What are the three types of financial management decisions? For each type of a decision, give an example of a business transaction that would be relevant.


      Sole Proprietorships and Partnerships.
      What are the four primary disadvantages to the sole proprietorship and partnership forms of business organization? What benefits are there to these types of business organizations as opposed to the corporate form?


      Corporations.
      What is the primary disadvantage of the corporate form of organization? Name at least two of the advantages of a corporate organization.


      Agency Problems.
      Who owns a corporation? Describe the process whereby the owners control the firm's management. What is the main reason that an agency relationship exists in the corporate form of organization? In this context, what kinds of problems can arise?

       



◄ICE BREAKING SESSION_OBA3105_Introduction to FinanceChapter 2 – Introduction to Islamic Finance►