The topic this week is the core principles of finance. Choose one of the principles that resonates with your perspective on financial decisions in Saudi Arabia. Search the Saudi Digital Library (SDL) or the internet for an academic or industry-related article regarding these core principles. Select an article that relates to your chosen principle and doing business in Saudi Arabia.
For your discussion post, your first step is to summarize the article in two paragraphs, describing what you think are the most important points made by the authors (remember to cite the information, as appropriate).
For the second step, include the reference listing with a hyperlink to the article. Please note, do not copy the article into your post and limit your summary to two paragraphs. Let me know if you have any questions. Enjoy your search.
Embed course material concepts, principles, and theories, which require supporting citations along with at least one scholarly peer-reviewed reference in supporting your answer unless the assignment calls for more.
Keep in mind that these scholarly references can be found in the Saudi Electronic Library by conducting an advanced search specific to scholarly references.
You need to reply to at least two peer discussion question post answers to this weekly discussion question. These post replies need to be substantial and constructive in nature. They should add to the content of the post and evaluate/analyze that post answer. Normal course dialogue doesn't fulfill these two peer replies but is expected throughout the course. Answering all course questions is also required.
Use Saudi Electronic University academic writing standards and APA style guidelines.
Module Introduction
Readings
Required
Chapter 1 in Foundations of Finance
Recommended
Chapter 1 PowerPoint slides - Foundations of Finance
Abdulaziz, I., Al-Aljan & Partners. (2017).An outline of various forms of doing business in Saudi Arabia.
Beck, V. (2014).The effects of the implementation of value-based management. International Journal of Economic Sciences and Applied Research, 7(2), 153-165.
The big data market: 2015 - 2030 - opportunities, challenges, strategies, industry verticals and forecasts. (2015, July 21). PR Newswire.
For Your Success
Welcome to the wonderful world of finance! If you read newspapers or watch financial news, you might wonder if finance is so wonderful. Current events are a good indication of why this course is important to you as an individual and as a business manager. The concepts and tools of finance provide methodology to establish economic value.
In this module we will consider the basic principles of finance and the goal of the firm. We will also examine value-based financial management (Morin & Jarrell, 2000). These concepts are important to the long-term success of organizations and are equally important to individuals, couples, families, communities, and countries.
Why should you study finance? Even if you hate math, you will benefit from understanding the process and the meaning of an organization's financial results.
With this knowledge, you can still hire a financial manager to do the analysis. The difference is, you will know how to approach a decision and what questions to ask, and you will understand the answers. This information also helps to know how and why organizations are formed.
Assignments required in this module
Compare your local time to US Mountain Time (Denver, Colorado, USA) to determine the time you need to submit your assignments based on your local time. Use these time zone converters to help translate your time:
There is a required Live Session hosted by your instructor this week.
Finance principles for this module
Principle 1: Cash Flow is What Matters - We are concerned with the money in hand, not accounting profit.
Principle 2: Money Has a Time Value - Money received today is worth more than an equal amount of money received in the future.
Principle 3: Risk Requires a Reward - We don't take additional risk unless we are compensated with additional return.
Principle 4: Market Prices are Generally Right - The value of financial assets in public markets instantly changes to reflect all available information.
Principle 5: Conflicts of Interest Cause Agency Problems - Conflicts of interest between owners and managers can create challenges for optimal efficiency and value creation in organizations.
Learning Outcomes
8. Describe the core principles of financial management.
9. Interpret the goal of the firm.
10. Evaluate the legal forms of business organizations.
11. Analyze tax considerations.