The content of this unit presents theoretical basis and analytical framework of financial decisions in a business organization. Upon a completion of this course, students are expected to have understanding of the concepts and techniques of financial management in the modern public corporations. It is concerned with the investment decision of firms; the determination of the financing mix necessary to achieve a firm’s financial objectives and dividend decision. Investment decisions determine a firm’s size, its operating profits, its business risk and its liquidity. Financing decisions affect a firm’s financing costs and its financial risk. Dividend decision determine how a firm distributes its profits to the owners. It also discusses financial topics that are very practical in reality and crucial in doing comtemporary research such as the MM theory with bankcruptcy cost, agency problem, asymmetry information and the limit to the use of debt; efficient market and behavioral finance; long-term financing and raising capital; options, futures, and corporate finance. Finally, this unit also provide in-depth knowledge of financial distress which is an important financial concept but hard to define precisely and now a day in Vietnam there is a variety of events befalling firms under financial distress but the issues remain unidentified and problematic to many Vietnamese firms.