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20 Cards in this Set

  • Front
  • Back
Means by which a manager can determine which investments to pursue, how to pay for them, and how to manage daily finances.
Business Finance
The top financial officer.
Chief Financial Officer
Person in charge of cash management and capital expenditures.
Process of managing a firm's long-term investments.
Capital budgeting
Amount of debt and equity used by a firm to finance its operations.
Capital structure
Short-term assets and liabilities.
Working capital
Management of a firm's cash, inventory, and payables.
Working capital management
Business owned by a single individual.
Sole proprietorship
Document that specifies how net profits and losses are to be divided among two or more owners.
Partnership agreement
Business entity that is treated as a legal person.
The legal papers which designate a firm's name, nature of business, and intended life.
Articles of incorporation
The rules which outline how a corporation will regulate itself.
Cross between a partnership and a corporation.
Limited Liability Company
Potential problem between a firm's owners and managers.
Agency problem
Anyone other than stockholders that might have a claim on the cash flow of a firm.
Original sale of securities by the issuer.
Primary market
The market for trading securities after the original sale.
Secondary market
The sale of securities to the general public by the issuer.
Public offering
A negotiated sale of securities by an issuer to a specific buyer.
Private placement
Over-the-counter markets
Dealer markets