Page 13 - Introduction to Business

CONTENTS xi

Foreign Currency Translation 422 Careers in Financial and Investment
Current Rate Method 423 Management 469
Temporal Rate Method 423 Summary 470 Chapter Questions 471 Interpreting
The Impact of Technology 423 Business News 471 Web Assignments 472
Portfolio Projects 472 Test Prepper 474
Technology and Business Timeline of Major Events
Regarding Accounting and Information Processing 425
American Institute of CPAs Top Ten Technologies 426 14
Accounting and Auditing Resources on the Web 427
Careers in Accounting 435 Understanding the
Summary 435 Chapter Questions 436 Interpreting Financial System,
Business News 436 Web Assignments 436 Portfolio Money, and Banking 476
Projects 437 Test Prepper 438
Introduction 477
Part Five The Financial System 478

Finance 441 Components of the Financial System 478
Case in Point Are the Golden Arches Turning
Red? 480
13 Structure of Financial Systems 482
Financial Systems and the Economy 486
Financial Management Money and Banking 487
of the Firm and What Is Money? 487
Investment Central Banks and Monetary Policy 492
Management 442 Monetary Policy Framework 495
Financial Institutions 501
Introduction 443 Depository Institutions 503
Key Financial Concepts 444 Technology and Business Online Banking 505
Owners Versus Managers 444 Nondepository Institutions 505
Accounting Profits Versus Economic Profits 445 Managing a Financial Institution 510
Role of the Financial Manager 445 Careers in the Financial System 512
Time Value of Money and Interest Rates 446 Summary 512 Chapter Questions 513 Interpreting
Technology and Business The Time Value of Money: Business News 514 Web Assignments 514 Portfolio
How Money Grows 448 Projects 515 Test Prepper 516

Firm Financial Decision Making 450
Net Present Value and Capital Budgeting
Decisions 450 15
Technology and Business Capital Budgeting Decisions Personal Financial
for Multiple-Year Investments 452
Planning 518
Sources of Funds and Financing Decisions 452
Managing Cash Within the Firm 457 Introduction 519
Matching Assets and Liabilities 458
The Purpose of Personal Financial Planning 519
The Role of Investment Managers 459
Key Concepts 520
Ethics in Business Trust in Investment Services 460 Computing Net Worth 520
Balancing Returns and Risks 461 Setting Financial Goals 522
Measuring Returns 461 Evaluating Spending Patterns 523
Counting the Risks 463 Identifying Your Stage in Life 525
Case in Point Market Risk and the Stock Performance of Turning to Experts 525
DaimlerChrysler, McDonald’s, and Sony 464 Managing Income 527
Managing Investment Risks 465 Budgeting 527
Making Investment Choices 467 The Envelope Budget 529

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