Define finance and the managerial finance function. Finance is the science and art of managing money. It affects virtually all aspects of business. Managerial finance is concerned with the duties of the financial manager working in a business. Financial managers administer the financial affairs of all types of business private and public, large and small, profit seeking and not for profit. They perform such varied tasks as developing a financial plan or budget, extending credit to customers, evaluating proposed large expenditures, and raising money to fund the firms operations.Describe the legal forms of business organization. The legal forms of business organization are the sole proprietorship, the partnership, and the corporation. The corporation is dominant in terms of business receipts, and its owners are its common and preferred stockholders. Stockholders expect to earn a return by receiving dividends or by realizing gains through increases in share.Describe the goal of the firm, and explain why maximizing the value of the firm is an appropriate goal for a business. The goal of the firm is to maximize its value and therefore the wealth of its shareholders. Maximizing the value of the firm means running the business in the interest of those who own it the shareholders. Because shareholders are paid after other stakeholders, it is generally necessary to satisfy the interest of other stakeholders to enrich shareholders.Describe how the managerial