The most important concept I have learned in the course is the PV, FV, and Payback Period. It is the first on the list because it is related to long-term risk-taking since the notions themselves help assess the possible financial benefits in the future. According to researchers, financial forecasting is highly challenging yet rewarding for investors (Abrishami et al., 2019). The number two is Beta, which helps assess the assets’ volatility when the stock market changes. Thus, it is an excellent tool to measure risks, which is essential during decision-making processes and estimating future steps aiming to increase productivity and profitability. Last but not least, interpreting financial statements is another critical concept that has multiple benefits when used adequately. This helps examine the business’s potential, the areas that need more investments, and those that have to become more cost-effective through improvement techniques. The knowledge I have gained through this course is especially significant in my understanding of the importance of risk assessment and forecasting future changes in the company regarding how it can be affected by changes in the market.
Financial statements and reports, financial analysis, and cash budgets are also critical concepts when building a business and keeping track of its success or areas that need improvement. All the chosen subjects are significant since having all the necessary financial data effectively measures the company’s overall position in the market, the internal environment, and the potentially damaging processes that have to be addressed promptly. The concepts that the student has picked are not only proficient in the analysis of the current situation of the organization but have to do with a level of estimation of the future financial potential, which is significant in avoiding risks and maximizing positive outcomes.
Reference
Abrishami, S., Turek, M., Roy Choudhury, A., & Kumar, P. (2019). Enhancing profit by predicting stock prices using Deep Neural Networks. 2019 IEEE 31st International Conference on Tools with Artificial Intelligence (ICTAI). Web.