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9 Cards in this Set
- Front
- Back
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Capital budgeting
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The process of planning and managing a firm's long-term investments.
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Capital structure
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The mixture of debt and equity maintained by a firm.
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Working capital
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A firm's short-term assets and liabilities.
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Sole proprietorship
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A business owned by a single individual.
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Partnership
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A business formed by to or more individuals or entities.
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Corporation
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A business created as a distinct legal entity composed of one or more individuals or entities.
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Goal of Financial Management
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To maximize the current value per share of the existing stock.
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Agency problem
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The possibility of conflict of interest between the stockholders and management of a firm.
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Stakeholder
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Someone other than a stockholder or creditor who potentially has a claim on the cash flows on the firm.
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