What is the main Base of Finance?

Question

James Perez, CPA, CMA Candidate · Answer

There are10 Axioms of Finance:

1. Risk and Return Trade-Off

2. Time Value of Money

3. Cash, Not Profit, is King

4. Incremental Cash Flows

5. Curse of Competitive Markets

6. Efficient Capital Markets

7. Agency Problem

8. Taxes bias business decisions

9. All risk are not equal

10. Ethical behavior is doing the right thing, ethical dilemmas are everywhere in finance.

Charles Offodile · Answer

The Main base of finance is the science of money management to execute any operational function