Create an account
form of organization represents single-person ownership and offers the advantages of simplicity of decision making and low organizational and operating costs. Major drawback is that there is unlimited liability to the owner
Articles of Partnership
agreement btwn participants that most partnerships are formed by. Specifies the ownership interest, the methods for distributing profits, and the means for w/drawing from the partnership
one or more partners are designated general partners and have unlimited liabilty for the debts of the firm; other partners are designated limited partners and are liable only for their initial contribution
unique--it is a legal entity unto itself; owned by shareholders who enjoy the privelege of limited liability; key feature is the easy divisibility of the ownership interest by issuing shares of stock
refers to those markets dealing w/ short-term securities that have a life of one year or less
indicates what the firm owns and how these assets are financed in the form of liabilities or ownership interest
used to weigh and evaluate the operating performance of a firm--used to compare performance record against similar forms in the industry--analyzing ratios and numerical calculations--such data is provided by various organizations
measurement of the firm's ability to earn an adequate return on: sales, assets, and invested capital
Asset Utilization Ratios
measures the speed at which the firm is turning over accounts receivable--receivables, inventory
Debt Utilization Ratios
estimates the overall debt position of the firm; evaluates in the light of asset base and earning power
Pro Forma Income Statement
provides projection on the anticipation of profits over a subsequent period
Percent of Sales Method
based on the assumption that: accounts on the balance sheet will maintain a given %age relationship to sales--notes payable, common stock, and retained earnings do not maintain a direct relationship w/ sales volume
Working Capital Management
the financing and management of the current assets of a firm - crucial to achieving long-term objectives of the firm or its failure--requires immediate action
Market Segmentation Theory
treasury securities are divided into market segments by the various financial institutions investing in the market
Tight Money Periods
capital is scarce making s/t financing difficult to find or may ensure very high rates--inadequate financing may mean loss of sales or financial embarassment
Cost Benefit Analysis
allows companies to analyze the benefits, received by investing on an efficiently maintained cash management program-- lockbox - money goes directly to the bank
Please allow access to your computer’s microphone to use Voice Recording.
Having trouble? Click here for help.
We can’t access your microphone!
Click the icon above to update your browser permissions and try again
Reload the page to try again!Reload
Press Cmd-0 to reset your zoom
Press Ctrl-0 to reset your zoom
It looks like your browser might be zoomed in or out. Your browser needs to be zoomed to a normal size to record audio.
Please upgrade Flash or install Chrome
to use Voice Recording.
For more help, see our troubleshooting page.
Your microphone is muted
For help fixing this issue, see this FAQ.
Star this term
You can study starred terms together