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29 Cards in this Set
- Front
- Back
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defined as the science and art of managing money (Gitman and Zutter, 2012) |
Finance |
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supposed to maximize the value of shareholder's wealth (Cayanan) |
Financial Management |
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maximize the value of shares of stocks |
Financial Management |
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language of both business and finance; recording business transaction and deals |
Accounting |
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act of estimating revenue and expenses over period of time |
Budgeting |
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long-term plans to run the company |
Strategic Planning |
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equipment, ingredients, tools, resources (specific) |
Tactical Planning |
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financial planning, detailed and specific (cost) |
Operational Planning |
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business owned by one person |
Sole Proprietorship |
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business owned by two or more people and operated for a profit |
Partnership |
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entity created by law owned by shareholders |
Corporation |
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often owned by family members |
privately owned corporations |
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may either be privately owned or publicly owned |
Corporations |
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measure of the financial performance of a company |
Profit |
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company's management of the type and amount of assets and liabilities |
Liquidity and Leverage |
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these factors influence the general reaction of investors |
External factors |
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they elect Board of Directors; they carry out their objectives |
Shareholders |
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management team that maximizes shareholders wealth |
Financial Manager |
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highest policy making body in a corporation; ensure corporation is operating |
Board of Directors |
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cannot manage the company on their own; carries out decision making for all functions |
President (Chief Executive Officer) |
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promotes good relationships with customers and distributors |
VP for Marketing |
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identifying adequate and cheap raw materials |
VP for Production |
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determines location, identifying means, processes or systems |
VP for Administration |
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determines appropriate capital structure |
Financing |
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investments either short term/long term |
Investing |
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determines how to finance working capital accounts |
Operating |
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determines when company should declare cash dividends |
Dividend Policies |
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functions of a financial manager |
Saving and Investing |
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supplies and users of various types of funds can make transactions directly |
Financial Markets |
