Fundamentals of Corporate Finance

A Review of Fundamentals of Corporate Finance by Richard D. Smith, III – Book Review

In Principles of Corporate Finance 11th Edition, you will find over forty chapters. Most of these chapters contain a wealth of information about investing in the corporate sector, how to conduct business and how to run your company. This is an excellent text for anyone who has just started their career, or anyone who wants to expand their knowledge of corporate finance and how it applies to their own life.

The book focuses primarily on how money can be created, and how businesses are organized. It discusses how money is distributed, how it is invested and how to use the money that is received to create a good profit. In fact, the book is divided into four main sections which include Introduction, Chapter One: Business Operations, Chapter Two: Business Strategy, Chapter Three: Finance and Accounting, and Chapter Four: Financing and Debt.

Part one of Principles of Corporate Finance begins with a detailed introduction to corporate finance and then continues through the topics discussed throughout the rest of the text. As with any text, there is some redundancy of certain topics throughout the text, but the general gist of the book is well presented. If you are interested in business management and have little or no experience with the topic, you will likely benefit greatly from the book.

Chapter one discusses fundamental aspects of the financial and business sectors. For example, we learn about why it’s important to develop a strategic plan, the benefits of investing in certain companies, and why it’s necessary to properly finance your venture. We also learn about the different types of capital, what types of borrowing are available, the difference between bonds and stock, the differences between banks and financial institutions, and so on. There are also a few sections about tax laws and the role that these play in the financing of a business venture.

Chapter two covers business operations and the legal aspects of operating a business. You will learn about the different forms of business credit, the various types of loans and their implications, how to organize a partnership, and so on. Additionally, we are introduced to accounting issues and the various types of receivables, inventories and the various types of materials used in a business.

Chapter three focuses on corporate finance and accounting principles. You will learn about the different types of assets, the importance of keeping books, and keeping accurate records, and so on. There are also some very useful tips about how to set up a bank account and obtain loans.

Chapter four discusses the financing of a business. This is where you will learn how to invest in capital and borrow money. We learn about how to acquire funding, and the various types of business debt such as stock or notes.

There are several appendices covering topics like corporate credit, corporate bankruptcy and other financial matters that are not covered in the text itself. However, the appendices are an excellent resource for more detail on a specific topic.

As stated previously, this is a comprehensive text. It goes into detail about each topic and you should be able to understand the subject matter even if you don’t hold a bachelor’s degree in business. The chapters are organized by area, so if you want to learn about sales and marketing, you can start at the section on accounting principles and move on to the chapters that cover business finance and accounting.

The book is full of colorful pictures and images throughout the text, and there are also a lot of charts and graphs throughout. They are easy to follow and are easily understandable.

Overall, this book is well worth the price. It is a complete guide to the basics of business finance and is certainly an interesting read. If you are familiar with basic business finance and accounting, you should find this book to be of substantial benefit to you.

Overall, it is a very good option if you want to gain an understanding of the basics of the financial aspects of running a business. It’s well organized and clearly written, and will help you learn about business finance from the basics all the way to the advanced topics.

Leave a Reply

Your email address will not be published. Required fields are marked *