Upgrade to remove ads
FIN 300: CH 1 Def
Chapter 1 Definitions
Terms in this set (15)
A law passed by Congress tat requires the CE and CFO o certify that their firms financial statements are accurate.
An unincorporated business owned by one individual.
An unincorporated business owned by two or more persons.
A legal entity created by a state, separate and distinct from its owners and managers, having unlimited life, easy transferability of ownership, and limited liability.
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.
Limited Liability Company (LLC)
A relatively new type of organization that is a hybrid between a partnership and a corporation.
Limited Liability Partnership (LLP)
Used for professional firms in the fields of accounting, law, and architecture. It has limited liability like corporations but is taxed like partnerships.
Shareholder Wealth Maximization
The primary goal for managers of publicly owned companies implies that decisions should be made to maximize the long-run value of the firm's common stock.
An estimate of a stock's "true" value based on accurate risk and return data. The intrinsic value can be estimated but not measured precisely.
The stock value based on perceived but possibly incorrect information as seen by the marginal investor.
An investor whose views determine the actual stock price.
The situation in which the actual market price equals the intrinsic value, so investors are indifferent between buying or selling a stock.
An individual who targets a corporation for takeover because it is undervalued.
The acquisition of a company over the opposition of its management.
A company's attitude and conduct toward its employees, customers, community, and stockholders.
THIS SET IS OFTEN IN FOLDERS WITH...
Chapter 7: Bonds and their Valuation
Ch12 Cash Flow Estimation and Risk Analysis
Bonds and Their Valuation - Chapter 7
Cash Flow Estimation and Risk Analysis
YOU MIGHT ALSO LIKE...
Fundamentals of Financial Management - Chapter 1
Chapter 1 An Overview of Financial Management
Chapter 1 An overview
Financial Management Chapter 1
OTHER SETS BY THIS CREATOR
CBEST Practice Test Math
BSRO The Game Plan
Lysistrata by Aristophanes (exam 2)
Week 11 Media Business