Identify and discuss the six pillars or principles of, Financial Management

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Identify and discuss the six pillars or principles of

Identify and discuss the six “pillars” or “principles” of finance (refer to chapter 1). Explain how these pillars help organizational leaders make financial decisions.

-Money has a time value

-Higher returns are expected for taking on more risk

-Diversification of investments can reduce risk

-Manager and stockholder objectives may differ

-Financial markets are efficient for pricing securities

-Reputation matters

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