1. What is Finance?

What types of decisions do people in finance

make?
Finance is defined as the management of money on how it is used and raised. In
finance, there are many activities involved; such activities like investing, borrowing, lending,
budgeting, saving, and forecasting. In daily life, finance management is always involved
whenever we buy or purchase things that we need and want. In simple terms, we call it money
management or the act of obtaining necessary finances. Whenever a person uses money, it
always involved the decision “will I buy it or not?” Hence, as the owner of the money you are the
manager. And in making the decision you must analyze and think first. Usually, people in
finance make decisions by asset expansion or asset growth, types of securities of the institution
they can apply in making sure their money is expanding and not wasting. In business, finance
manager makes decisions too, compared to people who manage it in daily life, finance
managers manage the money by making decisions in a deeper way such as what credit term
will be offered to the purchaser, what inventory will be forwarded to the next term, amount of
cash that business should handle, or purchasing another firm and even the amount of profit that
will serve as the dividend for the year that will be re-invest as a capital for the next period of
operation.

2. Why should persons who pursue careers in business have a basic

understanding of finance even if their jobs are in areas other than finance, such as
marketing or information system?
A person who pursues a career that has a finance-related course must have a basic
understanding of how money works because having a basic understanding of finance can assist
a person in making better financial decisions by providing a foundation for informed financial
decision-making. It also helps in other areas of business, such as Accounting, marketing, and
information systems, as it gives knowledge and understanding that can help in basic financial
decisions like analyzing whether a business or a brand will be able to profit or pay its
obligations. As an accountant having basic knowledge of finance makes you understand and
analyze the process of how the business is making a profit. While in marketing, finance helps
them to price the product easily by providing all the cost that was used in making the product or
even rendering the service, lastly, information system helps you as new to that career by
knowing how information about finance should be stored and recorded. Financial literacy is a
skill that provides lots of new advantages that can help people enhance their standard of living
by increasing their financial stability. It is important for a variety of reasons, one of which is the
growing financial obligation. As an accounting student having basic financial knowledge helps
us in budgeting our allowances and managing our personal financial aspects like savings and
investments. That will help us make decisions for better financial stability in the future.
 3. What does it mean to maximize the value of a corporation?
The term "maximizing the value of a corporation" refers to maximizing the wealth of a
company. When the price of a stock rises, we can claim that the value of a company is
maximized. For the owner, value maximization is preferred since it ensures not only a capital
gain from stock sales in the market but also a profit from dividends. When purchasing a firm,
buyers will examine a company's performance through investigative work, analyzing the
company's previous performance. The financial data's accuracy could have a significant impact
on the company's acquisition. Hence maximizing the value and performance of a corporation
may give a positive effect on the financial performance that will use by the potential investor or
customer in having an interest in the corporation. Also, the decision in maximizing the value of a
corporation should always reflect an increase in the total long run of the business.