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Terms in this set (61)
Shareholder wealth maximization
This goal of financial management is superior to other possible goals, since it considers the timing and risks associated with the cash flows expected from management's decisions.
This attribute of the corporate form of organization limits an owner's potential losses to the purchase price of the owner's shares.
This is the present worth of the future cash flows generated by an asset or firm, discounted at a rate appropriate for the riskiness of the cash flows.
This general term is given to an individual or a group that has an interest in, or is affected by, a business.
This entity, which is legally separate from its managers and owners, is authorized by a state to conduct business.
Double taxation of dividends
This is a disadvantage of the corporate organization since it requires taxes to be levied on both the income of the firm and the dividend income earned by its shareholders.
This code of behavior specifies how the firm and its employees will treat employees and stakeholders.
This is a participant in a partnership, whose personal assets may not be seized to satisfy the debts of the partnership.
It addresses how money is raised and used by individuals, businesses, and governments.
This position and title is held by the individual responsible for planning and managing how the firm is financed, when its funds are raised, and how its risks are managed.
Managerial (Business) Finance
Focuses on the decisions that firms make regarding their operations and cash flows
Assists individuals in selecting the securities that they might want to add to their securities portfolios
Financial Markets and Institutions
Works for a firm that accepts deposits and makes loans to customers
Helps individuals manage their money in order to meet their financial objectives
Your friend, Adam, has a job in which he helps people manage their money and plan for retirement. In which area of finance does Adam work?
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