Understand finance in order to understand these axioms

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Reference no: EM132002481

Explain and elaborate on the following axioms of finance:

1. Risk-return trade-off

2. Time value of money

3. Cash is king

4. Incremental cash flows

5. The agency problem

6. Taxes bias business decisions

7. All risk is not equal

8. Ethical dilemmas are everywhere in finance

What is meant by the phrase: “Although it is not necessary to understand finance in order to understand these axioms, it is necessary to understand these axioms in order to understand finance"?

Reference no: EM132002481

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