the business finance consultant

the business finance consultant

The Importance of Business Finance Classes in Higher Education

1. Introduction to Business Finance Classes

Concluding a unit on Business Partners, students should be able to describe ways the different types of business organizations are operated, explain the relationships among the different parties in a business partnership, and compare estimated revenues and expenses to determine which business partners can absorb losses. Before a unit on financial planning, students will spend time stating the main purpose of financial planning statements and defining the basic steps of the financial planning process. After completion of a unit on financial planning, students will be able to estimate startup capital and distinguish between leveraged and unleveraged capital when given a scenario. Furthermore, students will be able to explain the need for ongoing capital when given scenarios about a business’s completion of startup activities. More advanced finance classes include even more complex topics. Areas such as in-depth company valuation, advanced capital budgeting, and international business issues will expose students to the core concepts of business finance.

A university business finance class is designed to educate students about finance and the importance of financial planning in any business that the student would later work for. Students will learn how to apply business principles and financial planning techniques in a practical, real-world setting. A business finance class is required in business or finance programs at virtually all accredited colleges and universities. Students in a typical finance class will learn about business partners, working together, and what types of legal and financial liabilities a business has. They might explore different business companies, including corporations, partnerships, and sole proprietorships, and gain knowledge of the impact different economic principles have on business organizations.

2. Key Concepts and Theories Covered in Business Finance Classes

Instructors in business finance should cover a variety of topics, including business finance, mortgages, lending decisions, time value of money, valuation, risk and return, and more. The topic of business finance can be divided into many different smaller concepts, so for each subtopic, I will also include information on what sections of a financial textbook to include. After discussing the specifics of business finance topics, I will address whether the topics cover other concepts in economics related to the teaching of business finance. The topics presented and the economics taught in business finance classes are standard textbook fare. For the most part, the topics in this paper are included in all business finance textbooks. Since both this paper and the discussion of Hicks are based on activities that pre-date our teaching experience, the further extension here into a number of topics is probably the only source of novelty in this paper.

3. Practical Applications and Case Studies in Business Finance

The students who had received the opportunity to interact with Omega were given offers from a number of companies once they graduated from the business school in Dublin. However, the Omega finance group was surprised when 100% of the students selected Omega’s offers – Omega decided to establish its primary European office in Dublin. All graduates from that time were honored in the office’s grand opening. Omega had realized they were more than the standard-group presentations that went on at the end of the semester. As such, Omega offered a small sum of money for books to the student team who provided the best recommendations for Omega’s market penetration. As these successful graduates moved into high-level positions at companies that they chose over the long term from the multiple offers that they received, Omega was also assured that all of the effort that each student team and the individual students was expanded actually left an impression.

To further emphasize the importance of practical applications and case studies in any business finance course, Omega Financial’s experience offers a great example. A few years back, Omega initiated an open dialogue with the students of the finance faculty at a prestigious institute of higher education in Ireland. Omega was able to provide an exercise that was related to the course content while also tapping into Excel. Cash flow models were created while preparing the company’s budget, and the finished report helped set the stage for Omega’s board of directors to answer a related question that the faculty members posed to the students at their presentation of four companies. The questions were scattered within the 20-minute presentation and ranged from why Omega had chosen certain yield curves to why funds raised by equity divestures were hitting the bank account on such and such a date. Also, within the student teams, different groups had undertaken a variety of studies on Omega, so that each student was able to see how others had analyzed some of the parameters given by Omega’s board.

4. The Role of Business Finance Classes in Career Development

The aim of finance education in the undergraduate level is to offer every student a base of financial knowledge that they can aptly utilize in their career and life, as well as in their professional lives. Many undergraduates seek to take a place in the business world after they have graduated because of expectations concerning an increased personal income and opportunities. These individuals must be familiar with the financial ways in which businesses operate, operate as financially literate employees, and express an ability to take a role in various financial functions. Further, students of finance who are to become members of the academic world or consultants must be taught not only general finance and findings, but also how to convey these findings in a way that appeals to students or decision makers. These ideas make it very clear that financial education is very influential in providing an understanding of the way businesses operate and find ways to succeed in business endeavors as parts of it.

After high school, people typically attend higher education with the aim of entering a desired profession at the end. While education can provide the means to build a professional life, it cannot always prevent the disruption of careers because of financial difficulties. Although management of money resources is a significant factor in organizing individual and business life, for numerous students, it is very difficult to construct a clear model of budgeting. Achieving effective financial formation is not an easy procedure. The purpose of formal business finance education is to help students learn the critical thinking and organizational skills necessary to make financial decisions through systematic and comprehensive study. In this respect, it has become very important to demonstrate the necessity of business finance classes in the higher education process and to emphasize the fact that the results of insufficient financial management are committed to issues concerning the daily lives of educated individuals.

5. Conclusion and Future Trends in Business Finance Education

Additionally, students serious about financial success must quickly begin making sound business and personal finance decisions. Due to the universality and importance of finance in everyday activities, both the curriculum and faculty research focus may increase as breakdowns or discoveries about concealed costs occur in student business decision making. Furthermore, finance faculty can improve the quality of educating others and thus establish a focus on their discipline. As one respondent pointed out explicitly, “I have had to relearn some of the course content as a result of this distance education course. All positives. Good class.” (Female, 22, who has taken 48 hours of college classes, distance option.) “Due to the fact that this is a distance option course, I have had to be very independent and motivated and have learned to study on my own.”

The value of business finance education on students’ perception of course content, the applicability of course content, and the value of financial management concepts is well documented. This initial study demonstrates that students obtaining business finance education in an online environment further enhance the demonstrable value of previously documented didactic approaches. Students and faculty alike praise the increased interaction inherent in higher demand teaching and learning environments. The value of distance education noted in this study is consistent with the findings reported by Stuby who observed that distance education, especially Internet-based, increases the quality and quantity of interactions within the class.