Fundamentals of Corporate Finance Notes

Goals and Governance of the Corporation Based on the questions at the end of chapter 1 of Fundamentals of Corporate Finance International Edition (11th edition) by Brealey, Myers, Marcus. A security is a tradeable financial instrument, such as a stock, bond, option, future, or mutual fund. Companies usually buy real assets. These include both tangible assets (such as trademarks, trucks, lands, and labour) and intangible assets (such as brand names). The decision about which assets to buy is usually termed the capital budgeting or investment decision. Stocking up on inventory, developing new software, and selling a warehouse, are all investment decisions.