List and briefly describe the three key areas that the discipline of finance is generally divided into, using real-life examples from each area to contextualize your answer.
Explain what a balance sheet is, by describing its components and function.
Use an example to explain how risk and return are related in financial decision making.
Describe two examples of investments that involve an element of risk. In each scenario, suggest ways in which the element of risk might be reduced.
Describe the key way in which the study of finance differs from the study of other business disciplines such as human resources or marketing.
Choose the correct answer.
Match the terms listed with their definitions. Write the letters of the correct definitions.
The Departments of a Business
Considering the themes of this chapter, has Omar forgotten any important roles that every business should have, regardless of industry type?
How can the field of financial management help Omar maximize the company’s value?
Green Energy as a Long-Term Investment
Do you agree with Amir or Hasan? In terms of business finance, explain some of the benefits of “investing today to set us up for tomorrow”.
Hasan also notes that it is sensible to have a ‘diversified economy’ that doesn’t rely on one main source of revenue.
Over the last few decades, advances in technology have spurred
a smartphone to pay; merchants can now also accept payments using
What is the main function of the financial institutions? Link your answer to the case study.
How can e-payments help to promote and support small businesses in the private sector?
Research a business in Saudi Arabia that has an online shop.
