Create an account
Planning for a firm's money needs and managing the allocation and spending of funds
A document that outlines the funds needed for a certain period of time, along with the sources and intended uses of those funds
Planning and control tool that reflects expected revenues, operating expenses, and cash receipts and outlays
The process of analyzing and adjusting the basic financial plan to correct for deviations from forecasted events
Protecting against cost increases with contracts that allow a company to buy supplies in the future at designated prices
Budgeting approach in which each department starts from zero every year and must justify every item in the budget, rather than simply adjusting the previous year's budget amounts
zero- based budgeting
Budget that identifies the money a new company will need to spend to launch operations
start- up budget
Also known as the master budget, budget that identifies all sources of revenue and coordinates the spending of those funds throughout the coming year
Budget that outlines expenditures for real estate, new facilities, major equipment, and other capital investments
Arranging funding by selling ownership shares in the company, publicly or privately
leverage Technique of increasing the rate of return on an investment by financing it with borrowed funds
Loans backed up with assets that the lender can claim in case of default, such as a piece of property
Portion of an unsecured loan that is kept on deposit at the lending institution to protect the lender and increase the lender's return
Arrangement in which the financial institution makes money available for use at any time after the loan has been approved
line of credit
Short- term promissory notes, or contractual agreements, to repay a borrowed amount by a specified time with a specified interest rate
Method of funding in which the issuer borrows from an investor and provides a written promise to make regular interest payments and repay the borrowed amount in the future
Bonds backed by specific assets that will be given to bondholders if the borrowed amount is not repaid
Corporate bonds that can be exchanged at the owner's discretion into common stock of the issuing company
Account into which a company makes annual payments for use in redeeming its bonds in the future
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