The Role of Managerial Finance Part one

‫ٔظشح ػــــبِخ ػٓ اٌشبثزش‬

Finance : is the art and science of managing money. Finance affects all individuals, businesses,
and governments in the process of the transfer of money through institutions, markets, and
instruments

‫اي ِٓ خالي‬ِٛ‫ً األ‬٠ٛ‫خ رس‬١ٍّ‫ ػ‬ٟ‫ِبد ف‬ٛ‫اٌسى‬ٚ ‫اٌششوبد‬ٚ ‫غ األفشاد‬١ّ‫ خ‬ٍٝ‫ً ػ‬٠ّٛ‫إثش اٌز‬٠ .‫اي‬ِٛ‫ػٍُ ئداسح األ‬ٚ ٓ‫ ف‬ٛ٘ :ً٠ّٛ‫اٌز‬
.‫اد‬ٚ‫األد‬ٚ ‫اق‬ٛ‫األع‬ٚ ‫اٌّإعغبد‬

Financial services : is the area of finance concerned with the design and delivery of advice and
financial products to individuals, businesses, and government .

.‫ِخ‬ٛ‫اٌسى‬ٚ ‫اٌششوبد‬ٚ ‫خ ٌألفشاد‬١ٌ‫إٌّزدبد اٌّب‬ٚ ‫سح‬ٛ‫ُ اٌّش‬٠‫رمذ‬ٚ ُ١ّ‫ ثزظ‬ٟٕ‫ً اٌّؼ‬٠ّٛ‫ ِدبي اٌز‬ٟ٘ :‫خ‬١ٌ‫اٌخذِبد اٌّب‬

Managerial finance encompasses the functions of budgeting, financial forecasting, credit

administration, investment analysis, and funds procurement for the firm .

.‫اي ٌٍششوخ‬ِٛ‫بد األ‬٠‫ِشزش‬ٚ ‫ً االعزثّبس‬١ٍ‫رس‬ٚ ْ‫ئداسح االئزّب‬ٚ ٌٟ‫اٌزٕجإ اٌّب‬ٚ ‫خ‬١ٔ‫ضا‬١ٌّ‫ظبئف ا‬ٚ ٞ‫ً اإلداس‬٠ّٛ‫شًّ اٌز‬٠

Managerial finance: is the management of the firm's funds within the firm. This field offers
many career opportunities, including financial analyst, capital budgeting analyst, and cash
manager

‫خ‬١ٔ‫ضا‬١ٌّ‫ِسًٍ ا‬ٚ ٌٟ‫ رٌه اٌّسًٍ اٌّب‬ٟ‫ ثّب ف‬، ‫خ‬١‫ف‬١‫ظ‬ٌٛ‫ذ ِٓ اٌفشص ا‬٠‫مذَ ٘زا اٌّدبي اٌؼذ‬٠ .‫اي اٌششوخ داخً اٌششوخ‬ِٛ‫ ئداسح أ‬ٛ٘ ٞ‫ً اإلداس‬٠ّٛ‫اٌز‬
‫ش إٌمذ‬٠‫ِذ‬ٚ ‫خ‬١ٌ‫اٌشأعّب‬

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Careers in finance typically fall into one of two broad categories :
financial services and managerial finance. Workers in both areas rely on a common analytical
“tool kit,” but the types of problems to which that tool kit is applied vary a great deal from one
career path to the other .

ٍٝ‫ٓ ػ‬١ٌ‫ وال اٌّدب‬ٟ‫ْ ف‬ٍِٛ‫ؼزّذ اٌؼب‬٠ .ٞ‫ً اإلداس‬٠ّٛ‫اٌز‬ٚ ‫خ‬١ٌ‫ اٌخذِبد اٌّب‬:ٓ١‫ز‬١‫غ‬١‫ٓ سئ‬١‫ازذح ِٓ فئز‬ٚ ٟ‫ً ػبدحً ف‬٠ّٛ‫ ِدبي اٌز‬ٟ‫ٓ ف‬ٌّٙ‫رٕذسج ا‬
.‫ آخش‬ٌٝ‫ ئ‬ٟ‫ف‬١‫ظ‬ٚ ‫ ًشا ِٓ ِغبس‬١‫ب رخزٍف وث‬ٙ١ٍ‫اد ػ‬ٚ‫ػخ األد‬ّٛ‫ك ِد‬١‫زُ رطج‬٠ ٟ‫اع اٌّشىالد اٌز‬ٛٔ‫ ٌىٓ أ‬، ‫خ ِشزشوخ‬١ٍ١ٍ‫اد" رس‬ٚ‫ػخ أد‬ّٛ‫"ِد‬

1) Financial services : is the area of finance concerned with the design and delivery of
advice and financial products to individuals, businesses, and governments. It involves a variety
of interesting career opportunities within the areas of banking, personal financial planning,
investments, real estate, and insurance .

ّٓ‫زؼ‬٠ .‫ِبد‬ٛ‫اٌسى‬ٚ ‫اٌششوبد‬ٚ ‫خ ٌألفشاد‬١ٌ‫إٌّزدبد اٌّب‬ٚ ‫سح‬ٛ‫ُ اٌّش‬٠‫رمذ‬ٚ ُ١ّ‫ ثزظ‬ٟٕ‫ً اٌّؼ‬٠ّٛ‫ ِدبي اٌز‬ٟ٘ :‫خ‬١ٌ‫اٌخذِبد اٌّب‬
‫االعزثّبساد‬ٚ ٟ‫ اٌشخظ‬ٌٟ‫ؾ اٌّب‬١‫اٌزخط‬ٚ ‫خ‬١‫ ِدبالد األػّبي اٌّظشف‬ٟ‫شح ٌال٘زّبَ ف‬١‫خ اٌّث‬١‫ف‬١‫ظ‬ٌٛ‫ػخ ِٓ اٌفشص ا‬ٕٛ‫ػخ ِز‬ّٛ‫ِد‬
.ٓ١ِ‫اٌزأ‬ٚ ‫اٌؼمبساد‬ٚ

2)Managerial finance : is concerned with the duties of the financial manager working in a
business

.‫خ‬٠‫ األػّبي اٌزدبس‬ٟ‫ اٌؼبًِ ف‬ٌٟ‫ش اٌّب‬٠‫اخجبد اٌّذ‬ٛ‫خزض ث‬٠ :ٞ‫ً اإلداس‬٠ّٛ‫اٌز‬

Financial managers :administer the financial affairs of all types of businesses—private and
public, large and small, profit seeking and not for profit. They perform such varied tasks as
developing a financial plan or budget, extending credit to customers, evaluating proposed large
expenditures, and raising money to fund the firm’s operations. In recent years, a number of factors
have increased the importance and complexity of the financial manager’s duties. These factors
include the recent global financial crisis and subsequent responses by regulators, increased
competition, and technological change. For example, globalization has led U.S. corporations to
increase their transactions in other countries, and foreign corporations have done likewise in the
United States. These changes increase demand for financial experts who can manage cash flows in
different currencies and protect against the risks that arise from international transactions. These
changes increase the finance function’s complexity, but they also create opportunities for a more
rewarding career. The increasing complexity of the financial manager’s duties has increased the
popularity of a variety of professional certification programs outlined in the Focus on Practice box
below. Financial managers today actively develop and implement corporate strategies aimed at
helping the firm grow and improving its competitive position. As a result, many corporate
presidents and chief executive officers (CEOs) rose to the top of their organizations by first
demonstrating excellence in the finance function .

.‫ظ ٌٍشثر‬١ٌٚ ‫خ ٌٍشثر‬١‫ اٌغبػ‬، ‫شح‬١‫اٌظغ‬ٚ ‫شح‬١‫ اٌىج‬، ‫اٌؼبِخ‬ٚ ‫ اٌخبطخ‬- ‫اع األػّبي‬ٛٔ‫غ أ‬١ّ‫خ ٌد‬١ٌ‫ْ اٌّب‬ٚ‫ ئداسح اٌشإ‬:ٓ١١ٌ‫ٓ اٌّب‬٠‫ش‬٠‫اٌّذ‬
‫اي‬ِٛ‫خّغ األ‬ٚ ، ‫شح اٌّمزشزخ‬١‫ُ إٌفمبد اٌىج‬١١‫رم‬ٚ ، ‫ُ االئزّبْ ٌٍؼّالء‬٠‫رمذ‬ٚ ، ‫خ‬١ٔ‫ضا‬١ِ ٚ‫خ أ‬١ٌ‫ػغ خطخ ِب‬ٚ ً‫ػخ ِث‬ٕٛ‫بَ ِز‬ِٙ ْٚ‫إد‬٠ ُٙٔ‫ئ‬
‫اًِ األصِخ‬ٛ‫رشًّ ٘زٖ اٌؼ‬ٚ .ٌٟ‫ش اٌّب‬٠‫اخجبد اٌّذ‬ٚ ‫ذ‬١‫رؼم‬ٚ ‫خ‬١ّ٘‫اًِ ِٓ أ‬ٛ‫ صاد ػذد ِٓ اٌؼ‬، ‫شح‬١‫اد األخ‬ٕٛ‫ اٌغ‬ٟ‫ ف‬.‫بد اٌششوخ‬١ٍّ‫ً ػ‬٠ّٛ‫ٌز‬
‫ لبدد‬، ‫ً اٌّثبي‬١‫ عج‬ٍٝ‫ ػ‬.ٟ‫خ‬ٌٕٛٛ‫ش اٌزى‬١‫اٌزغ‬ٚ ‫بدح إٌّبفغخ‬٠‫ص‬ٚ ٓ١ّ‫د فؼً ِٓ لجً إٌّظ‬ٚ‫ِب رال٘ب ِٓ سد‬ٚ ‫شح‬١‫خ األخ‬١ٌّ‫خ اٌؼب‬١ٌ‫اٌّب‬
.‫بد اٌّزسذح‬٠‫ال‬ٌٛ‫ ا‬ٟ‫ء ٔفغٗ ف‬ٟ‫خ اٌش‬١‫ وّب فؼٍذ اٌششوبد األخٕج‬، ٜ‫ اٌجٍذاْ األخش‬ٟ‫ب ف‬ٙ‫بدح ِؼبِالر‬٠‫ ص‬ٌٝ‫خ ئ‬١‫ى‬٠‫ٌّخ اٌششوبد األِش‬ٛ‫اٌؼ‬
ِٓ ‫ رٕشأ‬ٟ‫خ ِٓ اٌّخبؽش اٌز‬٠‫اٌسّب‬ٚ ‫خ ثؼّالد ِخزٍفخ‬٠‫ُ ئداسح اٌزذفمبد إٌمذ‬ٕٙ‫ّى‬٠ ٓ٠‫ٓ اٌز‬١١ٌ‫ اٌخجشاء اٌّب‬ٍٝ‫شاد اٌطٍت ػ‬١١‫ذ ٘زٖ اٌزغ‬٠‫رض‬

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 ‫ذ‬٠‫ذ اٌّزضا‬١‫ اٌزؼم‬ٜ‫ أد‬.‫ٕخ أوثش ِىبفأح‬ٌّٙ ‫طب‬
ً ‫ؼب رخٍك فش‬٠‫أ‬
ً ‫ب‬ٕٙ‫ٌى‬ٚ ، ‫خ‬١ٌ‫فخ اٌّب‬١‫ظ‬ٌٛ‫ذ ا‬١‫شاد ِٓ رؼم‬١١‫ذ ٘زٖ اٌزغ‬٠‫ رض‬.‫خ‬١ٌٚ‫اٌّؼبِالد اٌذ‬
.ٖ‫ اٌّّبسعخ أدٔب‬ٍٝ‫ض ػ‬١‫ ِشثغ اٌزشو‬ٟ‫ػسخ ف‬ٌّٛ‫خ ا‬١ٌّٕٙ‫بداد ا‬ٙ‫ػخ ِٓ ثشاِح اٌش‬ٕٛ‫ػخ ِز‬ّٛ‫خ ِد‬١‫بدح شؼج‬٠‫ ص‬ٌٝ‫ ئ‬ٌٟ‫ش اٌّب‬٠‫اخجبد اٌّذ‬ٌٛ
.ٟ‫ٓ ِشوض٘ب اٌزٕبفغ‬١‫رسغ‬ٚ ٌّٕٛ‫ ا‬ٍٝ‫ذف ِغبػذح اٌششوخ ػ‬ٙ‫بد اٌششوخ ثٕشبؽ ث‬١‫د‬١‫ز اعزشار‬١‫رٕف‬ٚ ‫ش‬٠ٛ‫َ ثزط‬ٛ١ٌ‫ْ ا‬ٛ١ٌ‫ْ اٌّب‬ٚ‫ش‬٠‫َ اٌّذ‬ٛ‫م‬٠
.ً‫ال‬ٚ‫خ أ‬١ٌ‫فخ اٌّب‬١‫ظ‬ٌٛ‫ ا‬ٟ‫ض ف‬١ّ‫بس اٌز‬ٙ‫ُ ِٓ خالي ئظ‬ٙ‫ لّخ ِإعغبر‬ٌٝ‫ٓ ئ‬١٠‫ز‬١‫اٌشؤعبء اٌزٕف‬ٚ ‫ذ ِٓ سؤعبء اٌششوبد‬٠‫ اٌؼذ‬ٝ‫ اسرم‬، ‫دخ ٌزٌه‬١‫ٔز‬

LEGAL FORMS OF BUSINESS ORGANIZATION : ‫خ ٌّٕظّخ األػّبي‬١ٔٛٔ‫األشىبي اٌمب‬

1) A sole proprietorship is a business owned by one person who operates it for his or her own
profit. About 73 percent of all businesses are sole proprietorships. The typical sole proprietorship is
small, such as a bike shop, personal trainer, or plumber. The majority of sole proprietorships
operate in the wholesale, retail, service, and construction industries. Typically, the owner
(proprietor), along with a few employees, operates the proprietorship. The proprietor raises capital
from personal resources or by borrowing, and he or she is responsible for all business decisions. As
a result, this form of organization appeals to entrepreneurs who enjoy working independently. A
major drawback to the sole proprietorship is unlimited liability, which means that liabilities of
the business are the entrepreneur’s responsibility, and creditors can make claims against the
entrepreneur’s personal assets if the business fails to pay its debts.

‫خ‬١‫ ٍِى‬ٟ٘ ‫غ اٌششوبد‬١ّ‫ اٌّبئخ ِٓ خ‬ٟ‫ ف‬37 ٌٟ‫ا‬ٛ‫ ز‬.‫ك سثسٗ اٌخبص‬١‫ش٘ب ٌزسم‬٠‫ذ‬٠ ‫ازذ‬ٚ ‫وخ ٌشخض‬ٍِّٛ ‫ ششوخ‬ٟ٘ ‫خ‬٠‫خ اٌفشد‬١‫ اٌٍّى‬-1
‫ طٕبػبد‬ٟ‫خ ف‬٠‫خ اٌششوبد اٌفشد‬١‫ رؼًّ غبٌج‬.‫ عجبن‬ٚ‫ أ‬ٟ‫ ِذسة شخظ‬ٚ‫ ِثً ِزدش دساخبد أ‬، ‫شح‬١‫خ طغ‬١‫رخ‬ٌّٕٛ‫خ ا‬٠‫خ اٌفشد‬١‫ اٌٍّى‬.‫خ‬٠‫فشد‬
‫َ اٌّبٌه ثشفغ‬ٛ‫م‬٠ .‫خ‬١‫ اٌٍّى‬، ٓ١‫ظف‬ٌّٛ‫ً ِٓ ا‬١ٍ‫ خبٔت ػذد ل‬ٌٝ‫ ئ‬، )‫ش اٌّبٌه (اٌّبٌه‬٠‫ذ‬٠ ‫ ػبدحً ِب‬.‫اٌجٕبء‬ٚ ‫اٌخذِبد‬ٚ ‫اٌزدضئخ‬ٚ ‫غ ثبٌدٍّخ‬١‫اٌج‬
‫ فاْ ٘زا‬، ‫دخ ٌزٌه‬١‫ ٔز‬.ًّ‫غ لشاساد اٌؼ‬١ّ‫الً ػٓ خ‬ٚ‫ ِغإ‬ٟ٘ ٚ‫ أ‬ٛ٘ ْٛ‫ى‬٠ٚ ، ‫ك االلزشاع‬٠‫ ػٓ ؽش‬ٚ‫خ أ‬١‫اسد اٌشخظ‬ٌّٛ‫سأط اٌّبي ِٓ ا‬
‫ش‬١‫خ غ‬١ٌٚ‫ اٌّغإ‬ٛ٘ ‫خ‬٠‫خ اٌفشد‬١‫ ٌٍٍّى‬ٟ‫غ‬١‫ت اٌشئ‬١‫ اٌؼ‬.ً‫ْ ثبٌؼًّ ثشىً ِغزم‬ٛ‫غزّزؼ‬٠ ٓ٠‫اد األػّبي اٌز‬ٚ‫ٕبشذ س‬٠ ُ١‫اٌشىً ِٓ اٌزٕظ‬
‫خ‬١‫ي اٌشخظ‬ٛ‫ُ ِطبٌجبد ػذ األط‬٠‫ٓ رمذ‬١ٕ‫ّىٓ ٌٍذائ‬٠ٚ ، ‫ع‬ٚ‫خ طبزت اٌّشش‬١ٌٚ‫ ِغإ‬ٟ٘ ‫بد اٌششوخ‬١ٌٚ‫ أْ ِغإ‬ٟٕ‫ؼ‬٠ ‫ ِّب‬، ‫دح‬ٚ‫اٌّسذ‬
.‫ب‬ٙٔٛ٠‫ عذاد د‬ٟ‫ٌشائذ األػّبي ئرا فشٍذ اٌششوخ ف‬

2) A partnership : consists of two or more owners doing business together for profit.
Partnerships account for about 7 percent of all businesses, and they are typically larger than sole
proprietorships. Partnerships are common in the finance, insurance, and real estate industries.
Public accounting and law partnerships often have large numbers of partners. Most partnerships
are established by a written contract known as articles of partnership. In a general (or regular)
partnership, all partners have unlimited liability, and each partner is legally liable for all of the
debts of the partnership

‫غ األػّبي‬١ّ‫ اٌّبئخ ِٓ خ‬ٟ‫ ف‬3 ٌٟ‫ا‬ٛ‫ رّثً اٌششاوبد ز‬.‫خ ِ ًؼب ِٓ أخً اٌشثر‬٠‫ْ ثأػّبي ردبس‬ِٛٛ‫م‬٠ ‫ أوثش‬ٚ‫ٓ أ‬١‫ْ اٌششاوخ ِٓ ِبٌى‬ٛ‫رزى‬
‫ْ ٌششاوبد‬ٛ‫ى‬٠ ‫ غبٌجًب ِب‬.‫اٌؼمبساد‬ٚ ٓ١ِ‫اٌزأ‬ٚ ً٠ّٛ‫ ِدبالد اٌز‬ٟ‫ اٌششاوبد شبئؼخ ف‬.‫خ‬٠‫ْ أوجش ِٓ اٌششوبد اٌفشد‬ٛ‫ػبدح ِب رى‬ٚ ، ‫خ‬٠‫اٌزدبس‬
‫ ششاوخ‬ٟ‫ ف‬.‫د اٌششاوخ‬ٕٛ‫ؼشف ثبعُ ث‬٠ ‫ة‬ٛ‫زُ ئٔشبء ِؼظُ اٌششاوبد ِٓ خالي ػمذ ِىز‬٠ .‫ش ِٓ اٌششوبء‬١‫ْ ػذد وج‬ٛٔ‫اٌمب‬ٚ ‫اٌّسبعجخ اٌؼبِخ‬
.‫ْ اٌششاوخ‬ٛ٠‫غ د‬١ّ‫ًب ػٓ خ‬١ٔٛٔ‫ي لب‬ٚ‫ه ِغإ‬٠‫وً شش‬ٚ ، ‫دح‬ٚ‫ش ِسذ‬١‫خ غ‬١ٌٚ‫غ اٌششوبء ِغإ‬١ّ‫زسًّ خ‬٠ ، )‫خ‬٠‫ ػبد‬ٚ‫ػبِخ (أ‬

3) corporation : An entity created by law ْٛٔ‫خت اٌمب‬ّٛ‫بْ رُ ئٔشبؤٖ ث‬١‫ و‬:‫اٌششوخ‬

ُٙ١‫ُ ٘بِخ اخذٔب٘ب لجً وذٖ ٘فىشوُ ث‬١٘‫خ ِفب‬٠ٛ‫ٗ ٕ٘ب ش‬١‫ف‬ٚ
1- stockholders : The owners of a corporation, whose ownership, or equity, takes the form of
either common stock or preferred stock

‫ُ اٌّّزبصح‬ٙ‫ األع‬ٚ‫خ أ‬٠‫ُ اٌؼبد‬ٙ‫ُ شىً األع‬ٙ‫ زظظ‬ٚ‫ُ أ‬ٙ‫ز‬١‫ٓ رأخز ٍِى‬٠‫ اٌز‬، ‫ أطسبة اٌششوخ‬:ُٙ‫أطسبة األع‬

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2- limited liability : A legal provision that limits stockholders’ liability for a corporation’s debt
to the amount they initially invested in the firm by purchasing stock

ٓ‫ اٌششوخ ػ‬ٟ‫خ ف‬٠‫ اٌجذا‬ٟ‫ٖ ف‬ٚ‫ اعزثّش‬ٞ‫ اٌّجٍغ اٌز‬ٌٝ‫ْ اٌششوخ ئ‬ٛ٠‫ٓ ػٓ د‬١ّ٘‫خ اٌّغب‬١ٌٚ‫سذ ِٓ ِغإ‬٠ ٟٔٛٔ‫ زىُ لب‬:‫دح‬ٚ‫خ اٌّسذ‬١ٌٚ‫اٌّغإ‬
.ُٙ‫ك ششاء األع‬٠‫ؽش‬

3- common stock The purest and most basic form of corporate ownership
.‫خ اٌششوبد‬١‫خ ٌٍّى‬١‫األوثش أعبع‬ٚ ٝ‫خ اٌشىً األٔم‬٠‫ُ اٌؼبد‬ٙ‫األع‬

4- Dividends : Periodic distributions of cash to the stockholders of a firm

.‫ اٌششوخ‬ٟ‫ُ ف‬ٙ‫خ ٌسٍّخ األع‬٠‫س‬ٚ‫خ اٌذ‬٠‫ؼبد إٌمذ‬٠‫ص‬ٛ‫ اٌز‬:‫ؼبد األسثبذ‬٠‫ص‬ٛ‫ر‬

5- Board of directors : Group elected by the firm’s stockholders and typically responsible for
approving strategic goals and plans, setting general policy, guiding corporate affairs, and
approving major expenditures

‫خ‬١‫د‬١‫اٌخطؾ االعزشار‬ٚ ‫ األ٘ذاف‬ٍٝ‫افمخ ػ‬ٌّٛ‫ٌخ ػبدح ػٓ ا‬ٚ‫ْ ِغإ‬ٛ‫رى‬ٚ ‫ اٌششوخ‬ٟ‫ٓ ف‬١ّ٘‫ػخ ِٕزخجخ ِٓ لجً اٌّغب‬ّٛ‫ ِد‬:‫ِدٍظ اإلداسح‬
‫خ‬١‫غ‬١‫ إٌفمبد اٌشئ‬ٍٝ‫افمخ ػ‬ٌّٛ‫ا‬ٚ ، ‫ْ اٌششوخ‬ٚ‫ٗ شإ‬١‫خ‬ٛ‫ر‬ٚ ، ‫بعخ اٌؼبِخ‬١‫ػغ اٌغ‬ٚٚ ،

Virtually every function within a firm is in some way connected with the receipt or
disbursement of cash. The cash relationship may be associated with the generation of sales
through the marketing department, the incurring of raw material costs through
purchasing, or the earnings of production workers. Since finance deals primarily with
management of cash for operation of the firm every person within the firm needs to be
knowledgeable of finance to effectively work with employees of the financial departments

ُ‫ؼبد ِٓ خالي لغ‬١‫ذ اٌّج‬١ٌٛ‫خ ثز‬٠‫ لذ رشرجؾ اٌؼاللخ إٌمذ‬.‫ طشف إٌمذ‬ٚ‫مخ ِب ثبعزالَ أ‬٠‫فخ داخً اٌششوخ ثطش‬١‫ظ‬ٚ ً‫ رشرجؾ و‬، ‫الغ‬ٌٛ‫ ا‬ٟ‫ف‬
‫ ِغ ئداسح إٌمذ‬ٟ‫زؼبًِ ثشىً أعبع‬٠ ً٠ّٛ‫ ٔظ ًشا ألْ اٌز‬.‫ أسثبذ ػّبي اإلٔزبج‬ٚ‫ أ‬، ‫اد اٌخبَ ِٓ خالي اٌششاء‬ٌّٛ‫ف ا‬١ٌ‫ رىجذ رىب‬ٚ‫ أ‬، ‫ك‬٠ٛ‫اٌزغ‬
.‫خ‬١ٌ‫ اإلداساد اٌّب‬ٟ‫ظف‬ِٛ ‫خ ِغ‬١ٌ‫ً ٌٍؼًّ ثفؼب‬٠ّٛ‫خ ثبٌز‬٠‫ دسا‬ٍٝ‫ْ ػ‬ٛ‫ى‬٠ ْ‫ أ‬ٌٝ‫سزبج وً شخض داخً اٌششوخ ئ‬٠ ، ‫ً اٌششوخ‬١‫ٌزشغ‬

president or chief : executive officer (CEO) Corporate official responsible for managing
the firm’s day-to day operations and carrying out the policies established by the board of
directors

‫خ ٌٍششوخ‬١ِٛ١ٌ‫بد ا‬١ٍّ‫ي ػٓ ئداسح اٌؼ‬ٚ‫ي اٌششوخ اٌّغإ‬ٚ‫) ِغإ‬CEO( ٞ‫ز‬١‫ي اٌزٕف‬ٚ‫ اٌّغإ‬:‫ظ‬١‫ اٌشئ‬ٚ‫ظ أ‬١‫اٌشئ‬
.‫ب ِدٍظ اإلداسح‬ٙ‫ػؼ‬ٚ ٟ‫بعبد اٌز‬١‫ز اٌغ‬١‫رٕف‬ٚ

Other Limited Liability Organizations : A number of other organizational forms provide

owners with limited liability. The most popular are limited partnership (LP), S corporation
(S corp), limited liability company (LLC), and limited liability partnership (LLP). Each
represents a specialized form or blending of the characteristics of the organizational forms
described previously. What they have in common is that their owners enjoy limited liability,
and they typically have fewer than 100 owners

4
 ٟ٘ ‫ػًب‬ٛ١‫ األوثش ش‬.‫دح‬ٚ‫خ ِسذ‬١ٌٚ‫ٓ ِغإ‬١‫ ٌٍّبٌى‬ٜ‫خ األخش‬١ّ١‫فش ػذد ِٓ األشىبي اٌزٕظ‬ٛ٠ :‫دح‬ٚ‫خ اٌّسذ‬١ٌٚ‫ راد اٌّغإ‬ٜ‫إٌّظّبد األخش‬
‫خ‬١ٌٚ‫اٌششاوخ راد اٌّغإ‬ٚ )LLC( ‫دح‬ٚ‫خ اٌّسذ‬١ٌٚ‫اٌششوخ راد اٌّغإ‬ٚ )S Corporation (S corp ٚ )LP( ‫دح‬ٚ‫اٌششاوخ اٌّسذ‬
ْ‫ أ‬ٛ٘ ُٕٙ١‫ اٌمبعُ اٌّشزشن ث‬.‫فخ عبثمًب‬ٛ‫ط‬ٌّٛ‫خ ا‬١ّ١‫ِضخب ٌخظبئض األشىبي اٌزٕظ‬
ً ً ‫ب شىالً ِزخظ‬ِٕٙ ً‫ّثً و‬٠ .)LLP( ‫دح‬ٚ‫اٌّسذ‬
ٚ‫ظب أ‬
‫ ِبٌه‬111 ِٓ ً‫ُ أل‬ٙ٠‫ْ ٌذ‬ٛ‫ى‬٠ ‫ػبدح ِب‬ٚ ، ‫دح‬ٚ‫خ ِسذ‬١ٌٚ‫ْ ثّغإ‬ٛ‫زّزؼ‬٠ ‫ب‬ٙ‫أطسبث‬

Career Opportunities in Managerial Finance

Financial analyst : Prepares the firm’s
financial plans and budgets. Other duties
include financial forecasting, performing
financial comparisons, and working closely with
accounting
Capital expenditures manager : Evaluates
and recommends proposed long-term
investments. May be involved in the financial
aspects of implementing approved investments
Project finance manager : Arranges
financing for approved long-term investments.
Coordinates consultants, investment bankers,
and legal counsel
Cash manager : Maintains and controls the
firm’s daily cash balances. Frequently manages
the firm’s cash collection and disbursement
activities and short-term investments and
coordinates short-term borrowing and banking
relationships
Credit analyst/manager : Administers the firm’s
credit policy by evaluating credit applications,
extending credit, and monitoring and collecting
accounts receivable
Pension fund manager :Oversees or manages the
assets and liabilities of the employees’ pension
fund
Foreign exchange manager : Manages specific
foreign operations and the firm’s exposure to
fluctuations in exchange rates
ًّ‫ رش‬.‫بد‬١ٔ‫ضا‬١ٌّ‫ا‬ٚ ‫خ ٌٍششوخ‬١ٌ‫ ئػذاد اٌخطؾ اٌّب‬:ٌٟ‫اٌّسًٍ اٌّب‬
ًّ‫اٌؼ‬ٚ ‫خ‬١ٌ‫ئخشاء اٌّمبسٔبد اٌّب‬ٚ ٌٟ‫ اٌزٕجإ اٌّب‬ٜ‫اخجبد األخش‬ٌٛ‫ا‬
.‫ك ِغ اٌّسبعجخ‬١‫ث‬ٚ ً‫ثشى‬
ً‫ٍخ األخ‬٠ٛ‫ ثبالعزثّبساد ؽ‬ٟ‫ط‬ٛ٠ٚ ُ١‫م‬٠ :‫خ‬١ٌ‫ش إٌفمبد اٌشأعّب‬٠‫ِذ‬
‫ز االعزثّبساد‬١‫خ ٌزٕف‬١ٌ‫أت اٌّب‬ٛ‫ اٌد‬ٟ‫شبسن ف‬٠ ‫ لذ‬.‫اٌّمزشزخ‬
.‫اٌّؼزّذح‬
ً‫ٍخ األخ‬٠ٛ‫ً ٌالعزثّبساد ؽ‬٠ّٛ‫شرت اٌز‬٠ :‫ع‬ٚ‫ً اٌّشش‬٠ّٛ‫ش ر‬٠‫ِذ‬
ٓ١٠‫ٓ االعزثّبس‬١١‫اٌّظشف‬ٚ ٓ١٠‫ٕغك االعزشبس‬٠ .‫اٌّؼزّذح‬
.ٓ١١ٔٛٔ‫ٓ اٌمب‬٠‫اٌّغزشبس‬ٚ
ُ‫زسى‬٠ٚ ‫خ ٌٍششوخ‬١ِٛ١ٌ‫خ ا‬٠‫ األسطذح إٌمذ‬ٍٝ‫سبفع ػ‬٠ :‫ش إٌمذ‬٠‫ِذ‬
‫اٌظشف اٌخبطخ‬ٚ ٞ‫ً إٌمذ‬١‫ش ثشىً ِزىشس أٔشطخ اٌزسظ‬٠‫ذ‬٠ .‫ب‬ٙ١‫ف‬
‫ش‬١‫ٕغك االلزشاع لظ‬٠ٚ ً‫شح األخ‬١‫االعزثّبساد لظ‬ٚ ‫ثبٌششوخ‬
.‫خ‬١‫اٌؼاللبد اٌّظشف‬ٚ ً‫األخ‬
‫خ ٌٍششوخ ِٓ خالي‬١ٔ‫بعخ االئزّب‬١‫ش اٌغ‬٠‫ذ‬٠ :ْ‫ش ائزّب‬٠‫ ِذ‬/ ًٍ‫ِس‬
ً١‫رسظ‬ٚ ‫ِشالجخ‬ٚ ، ْ‫ذ االئزّب‬٠‫رّذ‬ٚ ، ْ‫ُ ؽٍجبد االئزّب‬١١‫رم‬
.‫زغبثبد اٌمجغ‬
‫ي‬ٛ‫ش أط‬٠‫ذ‬٠ ٚ‫ أ‬ٍٝ‫ششف ػ‬٠ :‫خ‬٠‫ق اٌّؼبشبد اٌزمبػذ‬ٚ‫ش طٕذ‬٠‫ِذ‬
.ٓ١‫ظف‬ٌّٛ‫ق ِؼبشبد ا‬ٚ‫اٌزضاِبد طٕذ‬ٚ
‫رؼشع‬ٚ ‫خ ِسذدح‬١‫بد أخٕج‬١ٍّ‫ش ػ‬٠‫ذ‬٠ : ٟ‫ش اٌظشف األخٕج‬٠‫ِذ‬
.‫ أعؼبس اٌظشف‬ٟ‫اٌششوخ ٌٍزمٍجبد ف‬

Goal of the Firm

MAXIMIZE SHAREHOLDER WEALTH
 Finance teaches that managers’ primary goal should be to maximize the wealth of the
firm’s owners—the stockholders. The simplest and best measure of stockholder wealth is
the firm’s share price, so most textbooks (ours included) instruct managers to take
actions that increase the firm’s share price. A common misconception is that when firms
strive to make their shareholders happy, they do so at the expense of other constituencies
such as customers, employees, or suppliers

5
 ‫ح‬ٚ‫بط ٌثش‬١‫أفؼً ِم‬ٚ ‫ ئْ أثغؾ‬.ٓ١ّ٘‫ اٌّغب‬- ‫ اٌششوخ‬ٟ‫ح ِبٌى‬ٚ‫ُ ثش‬١‫ْ رؼظ‬ٛ‫ى‬٠ ْ‫دت أ‬٠ ٓ٠‫ش‬٠‫ ٌٍّذ‬ٟ‫ذف األعبع‬ٌٙ‫ً ا‬٠ّٛ‫ اٌز‬ٝ‫ف‬
‫ ارخبر اإلخشاءاد‬ٌٝ‫ٓ ئ‬٠‫ش‬٠‫خٗ اٌّذ‬ٛ‫ رٌه وزجٕب) ر‬ٟ‫خ (ثّب ف‬١‫ ٌزا فاْ ِؼظُ اٌىزت اٌّذسع‬، ‫ُ اٌششوخ‬ٙ‫ عؼش ع‬ٛ٘ ُٙ‫ األع‬ٍِٟ‫زب‬
ً‫ب رفؼ‬ٙٔ‫ فا‬، ‫ب‬ٙ١ّ٘‫ ئعؼبد ِغب‬ٌٝ‫ اٌششوبد ئ‬ٝ‫ُ اٌخبؽئخ اٌشبئؼخ أٔٗ ػٕذِب رغؼ‬١٘‫ ِٓ اٌّفب‬.‫ُ اٌششوخ‬ٙ‫ذ ِٓ عؼش ع‬٠‫ رض‬ٟ‫اٌز‬
.ٓ٠‫سد‬ٌّٛ‫ ا‬ٚ‫ٓ أ‬١‫ظف‬ٌّٛ‫ ا‬ٚ‫ ِثً اٌؼّالء أ‬ٜ‫ زغبة فئبد أخش‬ٍٝ‫رٌه ػ‬

Earnings per share (EPS) : The amount earned during the period on behalf of each
outstanding share of common stock, calculated by dividing the period’s total earnings
available for the firm’s common stockholders by the number of shares of common stock
outstanding

‫ أسثبذ‬ٌٟ‫ثًب ثمغّخ ئخّب‬ٛ‫ ِسغ‬، ‫خ‬٠‫ُ اٌؼبد‬ٙ‫ُ لبئُ ِٓ األع‬ٙ‫بثخ ػٓ وً ع‬١ٔ ‫ اٌّجٍغ اٌّىزغت خالي اٌفزشح‬:)EPS( ُٙ‫خ اٌغ‬١‫سثس‬
.‫خ اٌمبئّخ‬٠‫ُ اٌؼبد‬ٙ‫ ػذد األع‬ٍٝ‫ٓ ػ‬١٠‫ اٌششوخ اٌؼبد‬ّٟ٘‫اٌفزشح اٌّزبزخ ٌّغب‬

But does profit maximization lead to the highest possible share price? NO . For at
least three reasons
 First, timing is important. An investment that provides a lower profit in the short run
may be preferable to one that earns a higher profit in the long run
 Second, profits and cash flows are not identical. The profit that a firm reports is simply
an estimate of how it is doing, an estimate that is influenced by many different
accounting choices that firms make when assembling their financial reports. Cash flow is
a more straightforward measure of the money flowing into and out of the company.
Companies have to pay their bills with cash, not earnings, so cash flow is what matters
most to financial managers
 Third, risk matters a great deal. A firm that earns a low but reliable profit might be
more valuable than another firm with profits that fluctuate a great deal (and therefore
can be very high or very low at different times)

ً‫ األل‬ٍٝ‫ ٌثالثخ أعجبة ػ‬. ‫ُ؟ ال‬ٙ‫ عؼش ِّىٓ ٌٍغ‬ٍٝ‫ أػ‬ٌٝ‫ُ اٌشثر ئ‬١‫ رؼظ‬ٞ‫إد‬٠ ً٘ ٓ‫ٌى‬ٚ

ٍٝ‫سثسب أػ‬
ً ‫سمك‬٠ ٞ‫ش أفؼً ِٓ االعزثّبس اٌز‬١‫ اٌمظ‬ٜ‫ اٌّذ‬ٍٝ‫سثسب ألً ػ‬
ً ‫فش‬ٛ٠ ٞ‫ْ االعزثّبس اٌز‬ٛ‫ى‬٠ ‫ لذ‬.ُِٙ ‫ذ‬١‫ل‬ٛ‫ اٌز‬، ‫ال‬ٚ‫أ‬
.ً٠ٛ‫ اٌط‬ٜ‫ اٌّذ‬ٍٝ‫ػ‬

‫زأثش‬٠ ‫ش‬٠‫ رمذ‬ٛ٘ٚ ، ‫ب‬ٍّٙ‫خ ػ‬١‫ف‬١‫ش ٌى‬٠‫ ِدشد رمذ‬ٛ٘ ‫ رمذِٗ اٌششوخ‬ٞ‫ اٌشثر اٌز‬.‫غذ ِزطبثمخ‬١ٌ ‫خ‬٠‫اٌزذفمبد إٌمذ‬ٚ ‫ األسثبذ‬، ‫ًب‬١ٔ‫ثب‬
‫بط‬١‫ ِم‬ٛ٘ ٞ‫ اٌزذفك إٌمذ‬.‫خ‬١ٌ‫ش٘ب اٌّب‬٠‫غ رمبس‬١ّ‫ب اٌششوبد ػٕذ رد‬ٙ‫َ ث‬ٛ‫ رم‬ٟ‫خ اٌّخزٍفخ اٌز‬١‫بساد اٌّسبعج‬١‫ذ ِٓ اٌخ‬٠‫ثبٌؼذ‬
‫ ٌزا فاْ اٌزذفك‬، ‫ظ ثبألسثبذ‬١ٌٚ ، ‫ش٘ب ٔمذًا‬١‫ار‬ٛ‫ اٌششوبد دفغ ف‬ٍٝ‫ٓ ػ‬١‫زؼ‬٠ .‫خبسج اٌششوخ‬ٚ ً‫اي اٌّزذفمخ داخ‬ِٛ‫ِجبشش أوثش ٌأل‬
.ٓ١١ٌ‫ٓ اٌّب‬٠‫ش‬٠‫ُ اٌّذ‬ٙ٠ ‫ أوثش ِب‬ٛ٘ ٞ‫إٌمذ‬

‫ راد أسثبذ‬ٜ‫ّخ ِٓ ششوخ أخش‬١‫لًب أوثش ل‬ٛ‫ث‬ِٛ ٓ‫ٌى‬ٚ ‫ِٕخفؼب‬

ً ً ‫ رسمك‬ٟ‫ْ اٌششوخ اٌز‬ٛ‫ لذ رى‬.‫ّخ خذًا‬ِٙ ‫ اٌّخبؽشح‬، ‫ثبٌثًب‬
‫سثسب‬
. ‫لبد ِخزٍفخ‬ٚ‫ أ‬ٟ‫ ِٕخفؼخ خذًا ف‬ٚ‫خ خذًا أ‬١ٌ‫ْ ػب‬ٛ‫ّىٓ أْ رى‬٠ ٌٟ‫ثبٌزب‬ٚ( ‫ش‬١‫رزمٍت ثشىً وج‬

6
Corporate Organization

7
 ‫ ٘زا اٌدضء‬ٍٝ‫غذ ثبٔه ػ‬١‫اعئٍخ اٌز‬
TRUE OR FALSE

1) A financial analyst is responsible for maintaining and controlling a firm's daily cash balances.
(FALSE )

2) Finance is concerned with the process institutions, markets, and instruments involved in the
transfer of money among and between individuals, businesses, and government. ( TRUE)
3) Financial managers administer the financial affairs of all types of businesses such as private and
public, large and small, and profit seeking and not for profit. ( TRUE)
4) Financial managers perform different tasks developing a financial plan or budget, extending
credit to customers, evaluating proposed large expenditures, and raising money to fund a firm's
operations. ( TRUE)
5) A capital expenditures analyst/manager is responsible for the evaluation and recommendation of
proposed asset investments. ( TRUE)
6) A controller administers a firm's credit policy by analyzing or managing the evaluation of credit
applications, extending credit, and monitoring and collecting accounts receivable. ( FALSE)
7) In large companies, CEOs are legally responsible for coordinating the assets and liabilities of the
employees' pension fund. (FALSE)
8) A controller typically handles the accounting activities, such as tax management, data
processing, financial accounting, and cost accounting. ( TRUE)
9) Managerial finance is concerned with design and delivery of advice and financial products to
individuals, businesses, and governments. ( FALSE)
10) In partnerships, owners have unlimited liability and may have to cover debts of other less
financially sound partners. ( TRUE)
11) In partnerships, partners can readily transfer their wealth to other partners. ( FALSE)
12) A sole proprietor has unlimited liability; his or her total investment in the business, but not his
or her personal assets, can be taken to satisfy creditors. ( FALSE)
13) In a limited partnership, all partners' liabilities are limited to their investment in the
partnership . ( TRUE)
14) A treasurer is responsible for the firm's accounting activities, such as corporate accounting, tax
management, financial accounting, and cost accounting. ( FALSE)

Multiple choice
1) ________ is concerned with design and delivery of advice and financial products to
individuals, businesses, and governments.

A) Managerial finance
B) Auditing services
C) Financial services
D) Cost accounting

2) Managerial finance ________.

A) involves tasks such as budgeting, financial forecasting, cash management, and
funds procurement
B) involves the design and delivery of advice and financial products
8
C) recognizes funds on an accrual basis
D) devotes the majority of its attention to the collection and presentation of financial data

3) Finance is ________.
A) the system of verifying, analyzing, and recording business transactions
B) the science of the production, distribution, and consumption of goods and services
C) the art and science of managing money
D) the art of merchandising products and services

4) Which of the following is an area of career opportunities in financial services?

A) supply chain management
B) personal financial planning
C) auditing of financial statements
D) production planning

5) Which of the following is an area of career opportunities in managerial finance?

A) investment
B) real estate and insurance
C) capital expenditures management
D) personal financial planning

6) Which of the following is a duty of a financial manager in a business firm?

A) developing marketing plans
B) controlling the stock price
C) raising financial resources
D) auditing financial records

7) A ________ is responsible for evaluating and recommending proposed long-term

investments.
A) financial analyst
B) credit manager
C) pension fund manager
D) capital expenditures manager
8) Which of the following legal forms of organization is most expensive to organize?
A) sole proprietorships
B) partnerships
C) corporations
D) limited partnership

9) Which of the following legal forms of organization has the ease of dissolution?
A) sole proprietorships
B) partnerships
C) limited partnerships
D) corporations

10) Under which of the following legal forms of organization is ownership readily transferable?
A) sole proprietorships
B) partnerships
C) limited partnerships
D) corporations
9) Which of the following forms of organizations is the easiest to form?
9
A) sole proprietorships
B) limited liability corporation
C) limited partnership
D) S-corporations

11) A major weakness of a partnership is ________.

A) the difficulty in maintaining owners' control
B) the difficulty in liquidating or transferring ownership
C) the double taxation of income
D) its high organizational costs

12) Which of the following is a strength of a corporation?

A) low taxes
B) limited liability
C) low organization costs
D) less government regulation

13) Which of the following legal forms of organizations is characterized by unlimited liability?
A) sole proprietorship
B) limited partnership
C) corporation
D) C-corporation

14) Which of the following is the purest and most basic form of corporate ownership?
A) bond
B) notes
C) common stock
D) preferred stock

15) Which of the following is true of a partnership and a corporation?

A) In a corporation, income is taxed at the corporate level; whereas, in a partnership, income is
taxed twice.
B) In a partnership, income is taxed at the corporate level; whereas, in a corporation,
income is taxed twice.
C) Income from both forms of organizations are double-taxed.
D) In a partnership, income is exempted from tax up to $10 million; whereas, in a corporation,
income is taxed twice.

16) Which of the following is true of sole proprietorships and corporations?

A) It is difficult to transfer ownership of corporations compared to that of sole proprietorships.
B) Income from both forms of organizations are taxed only at the corporate level.
C) Both sole proprietorships and corporations are equally scrutinized and regulated by
government bodies.
D) In sole proprietorships, owners have unlimited liability; whereas, in corporations,
owners have limited liability.

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