Finance concept

Finance concept is defined by the set of activities that includes processes, techniques and criteria to be used for the purpose of economic unity as a people, company or state, it optimizes both how to obtain financial resources and the use of themselves during the course of their business or business productive activity.

Finance is planning the financial resources to make your application in the most optimal way possible, in addition to research funding sources to capture them when the company has needs, seeks to reduce investment uncertainty All this in order to obtain the maximum earnings per share or profitability. Therefore, the concept should encompass finance companies and productive activity that are provided at the national and international market, ie development results.

The origin of the concept of finances, we can locate in the area of ​​economics that studies the functioning of money and capital markets, institutions operating in them, political fundraising, the value of money over time and the cost of capital. Finance concept also understood in a narrow sense as Treasury, Treasury, Treasury; eg Ministries of Finance.

In the beginning, the concept was understood as financial business economy, which is currently defined as Microeconomics or finance company which in turn are defined as part of economic science devoted to the study of fundamental units as affordable units production, or companies and economic units of consumption of families, as well as the different markets and the prices that they are formed of different behaviors of the participants in them.

Finance concept is then defined as the art, science of managing money, almost all individuals and organizations gain or earn money and spend or invest money. Then finance concept should be related to the process, institutions, markets and instruments involved in the transfer of money between individuals, as businesses and governments.

Objectives of the finance function within the concept of finance:

Planning company growth advance viewing your requirements both tactically and strategically.

Finding resources necessary for the smooth running of the company

Allocate those resources in accordance with the plans and projects

Promote the optimal use of resources

Reduce to a minimum the risk or uncertainty on investment.

business school accreditation

The Triple Crown concept is used in higher education when a university gets the three most important international accreditations.

Criteria

In business administration it speaks of the Triple Crown when a business school is accredited by the three most influential international associations of accreditation:

    Association to Advance Collegiate Schools of Business (AACSB) - Florida

    Association of MBA (AMBA) - London

    European Quality Improvement System (EQUIS) - Brussels

Members

Currently there are 67 universities with the Triple Crown in the world 1 (October 2014). Thus only about 1% of business schools 13670 world2 have successfully passed the tests of the three asociaciones.3 In Latin America, only nine business schools have the triple crown: EGADE Business School Institute of Technology and Higher Education Monterrey in Mexico, the School of Management at the University of the Andes in Colombia, the School of Business at the Universidad Adolfo Ibáñez in Chile, the Institute of Advanced Management Studies in Venezuela, EAESP of the Getulio Vargas Foundation in Brazil, IAE Universidad Austral (Argentina), Catholic CENTRUM of the Pontifical Catholic University of Peru in Peru and the Autonomous Technological Institute of Mexico (ITAM) 4 Currently the following business schools are creditors of the Triple Crown 5

    BSS Aarhus, Aarhus, Denmark

    Aston Business School, Aston University, Birmingham, UK

    Ashridge Business School, Berkhamstead, UK

    Audencia Nantes, Nantes, France

    Bordeaux Ecole de Management, Bordeaux, France

    Brisbane Graduate School of Business, Queensland University of Technology, Brisbane, Australia.

    Cass Business School, City University London, London, UK

    CENTRUM Católica, Pontifical Catholic University of Peru, Lima, Peru

    Cranfield School of Management, Bedfordshire, UK

    Academic Administration and Accounting Division, ITAM, Mexico City, Mexico

    Durham Business School, Durham University, Durham, UK

    EAESP - Fundação Getulio Vargas, São Paulo, Brazil

    EGADE Business School, Tecnológico de Monterrey, Monterrey, Mexico

    EDHEC, Lille & Nice, France

    EM Lyon, France

    ESCP-Europe European School of Management (Paris, London, Madrid, Berlin, Turin)

    ESC Rennes School of Business, Rennes, France

    ESSEC Business School Paris-Singapore

    ESADE Business School, Barcelona, ​​Spain

    Faculty of Business, City University of Hong Kong, Hong Kong

    Faculty of Business, The Hong Kong Polytechnic University, Hong Kong

    FCEE (School of Economics and Business Administration), Catholic University of Portugal, Lisbon, Portugal

    Faculty of Economics, New University of Lisbon, Lisbon, Portugal

    Grenoble School of Management Grenoble, France

    HEC Paris (Ecole des Hautes Etudes Commerciales)

    HEC Montreal, Canada

    Helsinki School of Economics, Helsinki, Finland

    Hull University Business School, Hull, UK

    Henley Business School, Henley-on-Thames and Reading, UK

    IAE Universidad Austral, Pilar, Argentina

    IE Business School, Madrid, Spain

    IESA, Caracas, Venezuela

    IESE Barcelona, ​​Spain

    IMD Lausanne, Switzerland

    INSEAD Fontainebleau, France / Singapore

    IPADE Business School, Mexico City-Monterrey / Mexico

    ITAM - Business School, Instituto Tecnologico Autonomo de Mexico, Mexico DF

    Lancaster University Management School, Lancaster, UK

    London Business School, London, UK

    Maastricht University, School of Business and Economics, Maastricht, Netherlands

    Manchester Business School, University of Manchester, Manchester, UK

    Mannheim Business School, University of Mannheim, Mannheim, Germany (Graduate School)

    Mannheim Business School, University of Mannheim, Mannheim, Germany (Undergraduate School)

    Open University Business School, UK

    Queen's School of Business, Kingston, Canada

    Reims Management School, Reims, France

    Rotterdam School of Management, Erasmus-Universiteit Rotterdam, Rotterdam, Netherlands

    Rouen Business School, Rouen, France

    Telfer School of Management, University of Ottawa, Ottawa, Canada

    Toulouse Business School, Toulouse, France / Barcelona, ​​Spain / Casablanca, Morocco

    Universidad de los Andes, School of Management, Bogotá, Colombia

    University College Dublin, Michael Smurfit Graduate School of Business, Dublin, Ireland

    University of Auckland Business School, Auckland, New Zealand

    University of Strathclyde Graduate School of Business, Glasgow, Scotland, UK

    Vlerick Leuven Gent Management School, Ghent, Belgium

    Waikato Management School, Hamilton, New Zealand

    Warwick Business School, University of Warwick, Warwick, United Kingdom

Business School

A business school is an academic institution of higher education that teaches subjects such as management, accounting, economics, marketing, finance, strategy, quantitative methods and organizational behavior. Most are schools (schools or colleges) of universities that issue official masters and doctoral degrees, but there are also private academic institutions with this designation that are not part of any university and emit unregulated own degrees.

History

The oldest business school which is still active is the ESCP Europe, founded in 1819 by the famous economist Jean-Baptiste Say.1 2

From there, the movement to create expanded business schools in the second half of the nineteenth century. In 1871 was created the Normandy Business School in Le Havre, France.3 Later the Wharton Business School (Philadelphia) and the HEC Paris (HEC Paris) was founded in 1881. In 1898 he founded the first Business schools in Germany (HHL Leipzig Graduate School of Management) and Switzerland (University of St. Gallen).

In 1900, they founded the Tuck School of Business (New Hampshire), the pioneer in providing a Masters in Business Administration (MBA), and that established and consolidated the model school which was followed by the rest of schools in the world.

In 1922 the school University of Chicago Booth School of Business offers the first doctoral program in business, and in 1943, the first executive MBA.

The first Spanish business school following the American style was the School of Industrial Organisation (EOI) established in 1955 by resolution of the Ministries of Industry and Education.

In 1957 Irene Vázquez Mier y Arturo Alsina founded the EADA Business School EADA.

Immediately afterwards, in 1958, he was created IESE, part of the University of Navarra in Spain, based in Barcelona.

In 1963, in Lima Peru, School of Graduate Business Administration, ESAN (ESAN University today) is based on the framework of an agreement between the governments of Peru and the United States. His organization was entrusted to the Graduate School of Business at Stanford, California, United States, offering the first full-time MBA program, the first of its kind in the Spanish speaking world.

In 1999, IDE-CESEM becomes the first business school to have the first Virtual Campus own for training online.

Today there are hundreds of specialized institutions, and major universities in the world have their own business schools.
Training

Business schools give training at the graduate level.

The case method is a method of formation commonly associated with business schools, although lectures, textbooks, business simulations, etc. are also used
Business schools

According to the Global Foundation for Management Education (Global Foundation for Management Education), in 2006 there were thousands of centers that offer business training; The exact number would be between 8,000 and 17,000, due to the lack of precise classifications in many countries.4
Rankings

There are many rankings that assess business schools based on various parameters.

Specialized media in the business world as Financial Times, The Economist 5, 6 Fortune or Business Week7 value the quality of teaching and resources used by schools through own research, polls and surveys schools and students old students.

The most prestigious schools in the world and often occupy all the rankings are Harvard Business School, University of Chicago Booth School of Business, Wharton School, Stanford and London Business School. In Spain, we are among the most prestigious institutions such as IESE Business School, Business School, ESADE Business School INEDE, ESIC Business & Marketing School, DTS, ESODE, EAE, EOI School of Industrial Organization, IDE-CESEM Business School, School Business Caixanova, Fundesem Business School EADA Business School (EADA), Cerem Business School and the European School of Management and Business (EUDE). In Argentina there are hundreds of business schools, namely Eseade (dependent UADE) or School of Management (ESM) dependent CAIE (arg center of innovation and entrepreneurship.).

The ranking prepared usually dedicated to a specific area (schools in Europe, schools in the United States, schools outside the United States, ...) or a specific type of program (MBA, online training, training within companies ...) .
Accreditations

Several international or national organizations deliver accreditations indicate that a business school meets a certain quality requirements.

It's called "triple accreditation" to get the three most prestigious accreditations in the world: the Association to Advance Collegiate Schools of Business (AACSB), the Association of Masters in Business Administration (AMBA) and the European Quality Improvement System (EQUIS). 66 business schools have earned the triple acreditación.8

Other accreditations are the International Assembly for Collegiate Business Education (IACBE).

Corporate Finance

Financial management or corporate finance is an area of ​​finance that focuses on monetary decisions made by companies and the tools and analysis used to make those decisions. The main objective of corporate finance is to maximize the value of accionista.1.

Discipline can be divided into technical decisions and long term and short term. The capital investment decisions are long term choices about which projects should receive funding, if an investment fund with equity or debt, and whether to pay dividends to shareholders. Moreover, short-term decisions are focused on short-term balance of assets and liabilities. The goal here is about the management of cash, stock and short-term financing.

The term is often associated with corporate finance often investment banking. The typical role of an investment banker to assess the financial needs of a company and raise the kind of appropriate capital to meet those needs themselves. Thus, corporate finance may be associated with transactions in which capital was raised to create, develop, grow and acquire businesses.

Key concepts in finance

    The dilemma between risk and profit

While an investor's expected return, more risk you run. Investors are risk averse, ie for a given level of risk seek to maximize the performance, which can also be understood that for a given level of return seek to minimize the risk.

    The value of money over time

It is preferable to have an amount of money that it now in the future. The owner of a financial resource will have to pay something for that resource dispensed with in the case Saver, is the interest rate, if the investor's rate of return or return.

    The dilemma between liquidity and the need to invest

The cash is needed for daily (working capital) but by sacrificing work increased investment.

    Opportunity costs

Consider that there are always several investment options. The opportunity cost is the rate of return on the best alternative investment available. It is the highest yield that will be earned if the funds are invested in a particular project is not obtained. It can also be seen as the loss that we're willing to take, not the choice that represents the best alternative use of money.

    Appropriate funding

The long-term investment should be financed with long-term funds, and likewise be financed short-term investments with short-term funds. In other words, investments should be put on the project with adequate funding.

    Leverage (use of debt)

The proper use of funds acquired by debt serves to increase the profits of a company or investor. An investor who receives borrowed funds 15%, for example, and brings to a business that pays 20% in theory, is increasing their own profits with the proper use of other resources, but also increases the level of risk investment, itself an exercise in financial simulation or financial projections.

    Efficient Diversification

The prudent investor diversifies his total investment, distributing his resources between several different investments. The effect to diversify is to distribute the risk and reduce the overall risk.

Main areas

The study area covers finance asset valuation analysis as those designed to create value financial decisions. The objective of the management team of a company should be the highest possible value creation, ie maximize profits for shareholders or owners, maximizing the value of the investment projects that the company is taking and get the highest possible return.

Companies create value when invested capital generates a rate of return higher than the cost of it.

The value of the company is represented by the market value of its assets; Logically, this should equal the market value of its liabilities which, in turn, is equal to the sum of the market value of its shares over the market value of their debts.

    legal structure of a corporation

    capital structure. Financial modeling and investment

    equity

    cost of capital and financial leverage (WACC)

    fusions and acquisitions

    investment banking

    techniques issuance of shares and debt: dividend policy

    financial difficulties: corporate restructuring

    ethics and corporate social responsibility

Risk

Risk is the possibility that actual results may differ from those expected or possibility of any untoward event occurs.

    Total risk: systematic risk + unsystematic risk

    It affects the yields of all the values ​​in the same way. (Nondiversifiable or inevitable) systematic risk There is no way to protect investment portfolios such a risk, and it is very useful to know the degree to which an asset yields are affected by such common factors, such a policy decision affects all tracks equally.

    Unsystematic risk (diversifiable or avoidable or idiosyncratic): This risk arises from the variability of returns from the non-market movements as a whole values. It is possible to reduce it through diversification.

In the category of risk, corporate finance have incorporated the probability of failure of current management models. In this regard there are several predictive model can serve the document Mosqueda (2010) as a benchmark issue.

Business Management ADE

It is a university degree where students are trained mainly in administration. Students receive training in all functional areas of management such as finance, marketing, human resources, operations and business strategy. In shallower students receive instruction in economics and accounting. Also, materials of Economic History, Business Law, Psychology, Sociology, Politics, Philosophy, Mathematics, Statistics, Technology, etc. are studied

In Spain, this degree is known as Administration and Management, abbreviated as ADE, the corresponding degrees or university degrees whose main subject of study is the Body. In Argentina, however, it is called Degree in Administration, since it is not directed solely to private enterprise, but to all organizations in general.

Currently there are many countries MBA (Master in Business Administration) where deepens and graduate knowledge acquired in all areas concerning administrative science. Sometimes titration is linked to other fields of specialization mode, such as marketing, calling then Administration and Management and Marketing (ADEM)

Administration or Doctorate in Business (DBA)

Business Administration or Doctorate in Business Administration (Doctor of Business Administration in English, abbreviated DBA) is a professional doctorate research in business.

The DBA bases its research in business and management issues.

This was set up in business schools in the US, because unlike the Ph.D., in the DBA can specialize in fields such as Marketing, Finance, Information Systems, Operations and Human Resources.

There are many business schools that require having managerial positions as a requirement to enter a DBA.

Association of MBA

The Association of MBA (AMBA) is an international organization based in London that accredits programs Master of Business Administration (MBA) at universities worldwide. The Association is one of the three major accrediting organizations in graduate business education. Since 2005, AMBA accredits Master's degree in International Business. Since 2006, AMBA also accredits degree Doctor of Business Administration (DBA).

AMBA was founded in 2011 to 19673 and 189 accredited business schools in 46 countries, including five in Spain and 29 in Latin America.4 Accredited schools in Spain include Business School, ESADE, IESE and EADA Business School ( EADA). Institutions in Latin America include six schools in Mexico, five in Chile, five in Argentina and one in Uruguay. AMBA accreditations have five, three or one year.

Every year since 1998, an MBA Student of the Year was selected by AMBA through a worldwide contest. The AMBA Research Division conducts research on government regulations and the market of business education. Thus AMBA is a catalyst for the modernization of the curriculum of MBA programs.

The dean of the Business School, Santiago Iñiguez, is a member of AMBA Accreditation Council. The current president of AMBA is Sir Paul Judge, the founder of the School of Business Cambridge Judge Business School at the University of Cambridge.

in business administration it speaks of the Triple Crown when a business school is accredited by the three most influential international associations of accreditation:

    Association to Advance Collegiate Schools of Business (AACSB) - Florida

    Association of MBA (AMBA) - London

    European Quality Improvement System (EQUIS) - Brussels

Members

Currently there are 67 universities with the Triple Crown in the world (October 2014). Thus only about 1% of business schools 13670 world2 have successfully passed the tests of the three asociaciones.3 In Latin America, only nine business schools have the triple crown: EGADE Business School Institute of Technology and Higher Education Monterrey in Mexico, the School of Management at the University of the Andes in Colombia, the School of Business at the Universidad Adolfo Ibáñez in Chile, the Institute of Advanced Management Studies in Venezuela, EAESP of the Getulio Vargas Foundation in Brazil, IAE Universidad Austral (Argentina), Catholic CENTRUM of the Pontifical Catholic University of Peru in Peru and the Autonomous Technological Institute of Mexico (ITAM) 4 Currently the following business schools are creditors of the Triple Crown

    BSS Aarhus, Aarhus, Denmark

    Aston Business School, Aston University, Birmingham, UK

    Ashridge Business School, Berkhamstead, UK

    Audience Nantes, Nantes, France

    Bordeaux Ecole de Management, Bordeaux, France

    Brisbane Graduate School of Business, Queensland University of Technology, Brisbane, Australia.

    Cass Business School, City University London, London, UK

    CENTRUM Católica, Pontifical Catholic University of Peru, Lima, Peru

    Cranfield School of Management, Bedfordshire, UK

    Academic Administration and Accounting Division, ITAM, Mexico City, Mexico

    Durham Business School, Durham University, Durham, UK

    EAESP - Fundação Getulio Vargas, São Paulo, Brazil

    EGADE Business School, Tecnológico de Monterrey, Monterrey, Mexico

    EDHEC, Lille & Nice, France

    EM Lyon, France

    ESCP-Europe European School of Management (Paris, London, Madrid, Berlin, Turin)

    ESC Rennes School of Business, Rennes, France

    ESSEC Business School Paris-Singapore

    ESADE Business School, Barcelona, ​​Spain

    Faculty of Business, City University of Hong Kong, Hong Kong

    Faculty of Business, The Hong Kong Polytechnic University, Hong Kong

    FCEE (School of Economics and Business Administration), Catholic University of Portugal, Lisbon, Portugal

    Faculty of Economics, New University of Lisbon, Lisbon, Portugal

    Grenoble School of Management Grenoble, France

    HEC Paris (Ecole des Hautes Etudes Commerciales)

    HEC Montreal, Canada

    Helsinki School of Economics, Helsinki, Finland

    Hull University Business School, Hull, UK

    Henley Business School, Henley-on-Thames and Reading, UK

    IAE Universidad Austral, Pilar, Argentina

    IE Business School, Madrid, Spain

    IESA, Caracas, Venezuela

    IESE Barcelona, ​​Spain

    IMD Lausanne, Switzerland

    INSEAD Fontainebleau, France / Singapore

    IPADE Business School, Mexico City-Monterrey / Mexico

    ITAM - Business School, Instituto Tecnologico Autonomo de Mexico, Mexico DF

    Lancaster University Management School, Lancaster, UK

    London Business School, London, UK

    Maastricht University, School of Business and Economics, Maastricht, Netherlands

    Manchester Business School, University of Manchester, Manchester, UK

    Mannheim Business School, University of Mannheim, Mannheim, Germany (Graduate School)

  Mannheim Business School, University of Mannheim, Mannheim, Germany (Undergraduate School)

    Open University Business School, UK

    Queen's School of Business, Kingston, Canada

    Reims Management School, Reims, France

    Rotterdam School of Management, Erasmus-Universiteit Rotterdam, Rotterdam, Netherlands

    Rouen Business School, Rouen, France

    Telfer School of Management, University of Ottawa, Ottawa, Canada

    Toulouse Business School, Toulouse, France / Barcelona, ​​Spain / Casablanca, Morocco

    Universidad de los Andes, School of Management, Bogotá, Colombia

    University College Dublin, Michael Smurfit Graduate School of Business, Dublin, Ireland

    University of Auckland Business School, Auckland, New Zealand

    University of Strathclyde Graduate School of Business, Glasgow, Scotland, UK

    Vlerick Leuven Gent Management School, Ghent, Belgium

    Waikato Management School, Hamilton, New Zealand

    Warwick Business School, University of Warwick, Warwick, United Kingdom

A Doctor of Business Administration Doctorate in Business Administration or Doctorate in Business Administration (Doctor of Business Administration in English, abbreviated DBA) is a professional doctorate research in business.

The DBA bases its research in business and management issues.

This was set up in business schools in the US, because unlike the Ph.D., in the DBA can specialize in fields such as Marketing, Finance, Information Systems, Operations and Human Resources.

There are many business schools that require having managerial positions as a requirement to enter a DBA.