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15 Cards in this Set
- Front
- Back
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Corporation |
A legal entity created by a state, separate and distinct from its owners and managers, havi h unlimited life, easy transferability of ownership, and limited liability. |
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Limited liability company (LLC) |
A popular type of organization that is a hybrid between a partnership and a corporation. |
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S-Corporations |
A special designation that allows small businesses that meet qualifications to be taxed as if they were a proprietorship or a partnership rather than a corporation. |
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Intrinsic value |
An estimate of a stock's "true" value based on accurate data. |
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Corporate governance |
Establishment of rules and practices by Board of Directors to ensure that managers act in shareholders interests while balancing the needs of other key constituencies. |
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Money Markets |
The financial markets in which funds are borrowed or loaned for short periods (less than one year). |
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Capital Markets |
The financial markets for stocks are for intermediate or long term debt (one year or longer). |
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Primary Markets |
Markets in which corporations raise capital by issuing new securities. |
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Annual Report |
A report issued annually by a corporation to its stockholders. |
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Stockholders Equity |
It represents the amount that stockholders paid the company when shares were purchased and the amount of earnings the company has retained since its origination. |
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Liquidity Ratios |
Ratios that show the relationship of a firm's cash and other current assets to its current liabilities. |
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Liquid Asset |
An asset that can be converted to cash quickly without having to reduce the assets price very much. |
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Current Ratio |
The ratio is calculated by dividing current assets by current liabilities. |
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Quick (acid test) Ratio |
This ratio is calculated by deducting inventories from current assets and then dividing the remainder by current liabilities. |
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Profit Margin |
This ratio measures net income per dollar of sales and is calculated by dividing net income by sales. |
