Shared Flashcard Set

Details

Overview of Financial Management
Chapter 1
11
Finance
Undergraduate 4
02/13/2011

Additional Finance Flashcards

 


 

Cards

Term

 

 

 

 

Efficiency

Definition

 

 

 

Generate a healthy profit or maximizing your profits

Term

 

 

 

 

liquidity

Definition

 

 

 

ability to pay bills on-time

Term

 

 

 

 

profitability

Definition

 

 

 

signs of continious growth in all segments of yoru business such as sales and profits

Term

 

 

 

Stability

Definition

 

 

ability to not overburden the business with too much debt

Term

 

 

 

 

Three Types of Business Decisions

Definition

 

1.) Investing Decisions

 

2.) Operating Decisions

 

3.) Financing Decisions

Term

 

 

 

 

Investing Decisions

Definition

Launches your business

 

expansion of your business

 

opening new retail outlets

 

buying equipment for your business

 

Term

 

 

 

 

Operating Decisions

Definition

day to day operations such as :

 

pricing, advertisng, hiring new employees and

buying office supplies.

 

 

Term

 

 

 

 

Financing Decisions

Definition

 

 

return: profit

 

 

cost: financing your business

Term

 

 

 

Finance

 

Definition

rasing funds to purchase the assets needed by a business.

 

1920's: organizational function focused on legal matterssuch as:

acquaitions, corporate offerings, merger, formation of new business, and so forth.

Term
Finance
Definition
developing analytical and decision-making techniques geared to assit managers in improving the effectiveness of their investing, operating, and financing decisions.
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