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Study sets matching "chapter 1 business finance"

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Study sets matching "chapter 1 business finance"

29 terms
Chapter 1 Business Finance
What is "Personal Finance?"
What are the four benefits of financia…
What are the six step to financial pla…
what is liquidity?
everything in your life that involves money
1. More money and financial planning... 2. How to use money to a…
1. Determine Your Current Financial Situation... 2. Develop Fina…
The ability to easily convert financial assets into cash with…
What is "Personal Finance?"
everything in your life that involves money
What are the four benefits of financia…
1. More money and financial planning... 2. How to use money to a…
25 terms
business finance chapter 1
the benefits of financial planning
opportunity costs
liquidity
why are personal financial goals impor…
-you have more money and financial security... -you know how to…
what is given up when making one choice instead of another
the ability to easily convert financial assets into cash with…
you need to plan how to use your money
the benefits of financial planning
-you have more money and financial security... -you know how to…
opportunity costs
what is given up when making one choice instead of another
18 terms
Business Finance Chapter 1
Capital structure
Working capital
sole proprietorship
partnership
is the specific mixture of long-term debt and equity the firm…
is the specific mixture of long-term debt and equity the firm…
is a business owned by one person. This is the simplest type…
is similar to a proprietorship except that there are two or m…
Capital structure
is the specific mixture of long-term debt and equity the firm…
Working capital
is the specific mixture of long-term debt and equity the firm…
49 terms
Business Finance - Chapter 1
Finance
Financial Management
Financial Markets
Investors
The study of applying specific value to things we own, servic…
The process for and the analysis of making financial decision…
The places and processes that facilitate the trading of finan…
Those who buy securities or other assets in hopes of earning…
Finance
The study of applying specific value to things we own, servic…
Financial Management
The process for and the analysis of making financial decision…
21 terms
Business Finance Chapter 1
Finance focuses on:
Ways to create value in a firm
How do you raise capital efficiency?
What 2 disciplines does finance build…
Making decisions that create value
Raising capital efficiency, and investing in value creating a…
Debt from creditors and equity from shareholders
Econ and Accouting
Finance focuses on:
Making decisions that create value
Ways to create value in a firm
Raising capital efficiency, and investing in value creating a…
38 terms
Business Finance - Chapter 1
Economics
Accounting
Financial Capital
Real Capital
The field of knowledge encompassing the workings of the econo…
The field of knowledge that provides financial managers with…
Financial claims on a firm or government, as oppose to real c…
Physical assets such as plant and equipment
Economics
The field of knowledge encompassing the workings of the econo…
Accounting
The field of knowledge that provides financial managers with…
29 terms
Business Finance Chapter 1
Bond Markets
Capital Markets
Common Stocks
Debt Securities
Place where bonds are traded and sold.
Debt securities that last longer than one year
Ownership shares of cooperations
A negotiable/tradable liable loan between 2 parties
Bond Markets
Place where bonds are traded and sold.
Capital Markets
Debt securities that last longer than one year
10 terms
Chapter 1 Business Finance
Economics
opportunity costs
scarcity
factors of production
The study of the decisions that go into making, distributing,…
is what you give up to get something else
requires that people decide which goods and services to use o…
resources needed to produce goods and services
Economics
The study of the decisions that go into making, distributing,…
opportunity costs
is what you give up to get something else
20 terms
Business Finance Chapter 1
Annuity
Consumer
Demand
Economics
A series of regular deposits.
A person who purchases and uses goods or services.
The amount of goods and services that people are willing to b…
The study of the decisions that go into making, distributing,…
Annuity
A series of regular deposits.
Consumer
A person who purchases and uses goods or services.
18 terms
Business Finance Chapter 1
Agency Problem
Capital Budgeting
Capital Structure Decision
Corporation
The separation of management and the ownership creates an age…
What long-term investments should the firm undertake?
How should the firm raise money to fund these investments?
- Legally functions separate from the owners... - Owners (common…
Agency Problem
The separation of management and the ownership creates an age…
Capital Budgeting
What long-term investments should the firm undertake?
21 terms
Business Finance Chapter 1
What are the 4 main areas of financial…
What are 4 careers you can hold in the…
Broadly speaking, the investments area…
What do stockbrokers do?
corporate finance, investments, financial institutions, inter…
stockbroker, financial advisers, portfolio managers, security…
financial assets; stocks; bonds
advise customers on what types of investments to consider and…
What are the 4 main areas of financial…
corporate finance, investments, financial institutions, inter…
What are 4 careers you can hold in the…
stockbroker, financial advisers, portfolio managers, security…
20 terms
Chapter 1 Business Finance Vocab.
1. Money
2. Finance
3. Inflation
4. Security
Any item that serves as a method of payment.
Activities involved with savings, investing, and using money…
A rise in the general level of prices.
an investment instrument issued by a corporation, government,…
1. Money
Any item that serves as a method of payment.
2. Finance
Activities involved with savings, investing, and using money…
8 terms
Business Finance - Chapter 1
Balance Sheet
Assets
Liabilities
Equity
Financial statement that enumerates (as of point in time) wha…
Items or property owned by a firm, household, or government a…
What an economic unit owes expressed in monetary terms.
Owners' investment in a firm; a firm's book value or net worth.
Balance Sheet
Financial statement that enumerates (as of point in time) wha…
Assets
Items or property owned by a firm, household, or government a…
13 terms
Chapter 1 : Business Finance
Economics
Opportunity cost
Scarcity
Factors of production
Is the study of the decisions that go into making, distributi…
Is what you give up to get something else.
Requires that people decide which goods and services to use o…
Are resources needed to produce goods and services.
Economics
Is the study of the decisions that go into making, distributi…
Opportunity cost
Is what you give up to get something else.
16 terms
Business Finance Chapter 1
Finance grew from?
3 areas of Finance
3 ideas Financial Management
Capital Markets
Economics and accoutning
Financial Management ... Capital Markets... Investments
How much and what type of assets to acquire... How to raise the…
Consists of markets where interest rates, along with stock an…
Finance grew from?
Economics and accoutning
3 areas of Finance
Financial Management ... Capital Markets... Investments
8 terms
Business Finance: Chapter 1
Capital Budgeting
Capital Structure
Working Capital
Sole Proprietorship
The process of planning and managing a firm's long-term inves…
The mixture of debt and equity maintained by a firm
A firm's short-term assets and liabilities
A business owned by a single individual
Capital Budgeting
The process of planning and managing a firm's long-term inves…
Capital Structure
The mixture of debt and equity maintained by a firm
11 terms
Business Finance Chapter 1
Finance
Financial Services
Managerial Finance
Financial Managers
Science and art of managing money
Area of finance concerned with the design and delivery of adv…
Concerned with the duties of the financial manager working in…
Administer the financial affairs of all types of businesses--…
Finance
Science and art of managing money
Financial Services
Area of finance concerned with the design and delivery of adv…
Business Finance Chapter 1
sarbanes oxley act
financial management
capital markets
investments
passed by congress and it requires CEO and CFO to certify tha…
how much and what types of assets to acquire, how to raise ca…
relate to markets where interest rates, stock prices and bond…
security analysis finding proper values of individual securit…
sarbanes oxley act
passed by congress and it requires CEO and CFO to certify tha…
financial management
how much and what types of assets to acquire, how to raise ca…
25 terms
business finance chapter 1
economics
opportunity cost
scarcity
factors of production
is the study of the decisions that go into making distributin…
is what you give up to get something else.
requires that people decide which goods and services to use o…
are resources needed to price goods and services.
economics
is the study of the decisions that go into making distributin…
opportunity cost
is what you give up to get something else.
29 terms
Business Finance Chapter 1
Economics
Opportunity Cost
Scarcity
Factors of Production
The study of the decisions that go into making, distributing,…
What you give up to get something else
Requires that people decide which goods and services to use o…
Resources needed to produce goods and services
Economics
The study of the decisions that go into making, distributing,…
Opportunity Cost
What you give up to get something else
29 terms
Business Finance Chapter 1
Finance
Financial Management
Cycle of Money
4 main areas of finance
the art and science of managing wealth; making decisions rega…
activities that create or preserve the economic value of the…
A cycle where financial intermediaries assist in the movement…
1. Corporate Finance... 2. Investments... 3. Financial Institutions…
Finance
the art and science of managing wealth; making decisions rega…
Financial Management
activities that create or preserve the economic value of the…
29 terms
Business Finance Chapter 1
Economics
Opportunity cost
Scarcity
Factors of production
study of the decisions that go into making, distributing, and…
what you give up to get something else.
requires that people decide on which goods and services to us…
resources needed to produce goods and services
Economics
study of the decisions that go into making, distributing, and…
Opportunity cost
what you give up to get something else.
29 terms
Business Finance Chapter 1
Economics
Opportunity Cost
Scarcity
Factors of Production
Is the study of the decisions that go into making distributin…
What you give up to get something else..
People decide which goods and services to use or not use due…
Resources needed to price goods and services..
Economics
Is the study of the decisions that go into making distributin…
Opportunity Cost
What you give up to get something else..
29 terms
Business FInance Chapter 1
economics
opportunity cost
scarcity
factors of production
Study pf decisions that go into making, .distributing, and us…
What you give up to get something else
requires that people decide which goods and services to use o…
resources needed to produce goods and services
economics
Study pf decisions that go into making, .distributing, and us…
opportunity cost
What you give up to get something else
29 terms
Business Finance Chapter 1
economics
opportunity cost
scarcity
factors of production
the study of the decision that go into making distributing, a…
what you give up to get something else
requires that people decide which goods and services to use o…
resources needed to produce goods and services
economics
the study of the decision that go into making distributing, a…
opportunity cost
what you give up to get something else
16 terms
Business Finance Chapter 1
cash flow is all that matters, money h…
incremental cash flow
opportunity cost
efficient market
five principles
the difference between the cash flows the company will produc…
the highest valued alternative that you had to give up when y…
where the prices of the assets traded in the market fully ref…
cash flow is all that matters, money h…
five principles
incremental cash flow
the difference between the cash flows the company will produc…
44 terms
Business Finance Chapter 1
Finance
Financial Environment
Financial institutions
Financial markets
Is the study of how individuals, institutions, governments, a…
Includes the financial system, markets, and individuals that…
Are organizations that help the financial system operate effi…
Are physical locations that facilitate the flow of funds amon…
Finance
Is the study of how individuals, institutions, governments, a…
Financial Environment
Includes the financial system, markets, and individuals that…
45 terms
Finance and Business- Chapter 1
True or False: Increased demand for a…
True or False: Developing financial go…
True or False: Opportunity costs refer…
True or False: Inflation reduces the b…
False
False
True
True
True or False: Increased demand for a…
False
True or False: Developing financial go…
False
7 terms
Chapter 1 (Business Finance)
Capital Budgeting
Capital Structure
Working Capital
Sole Proprietorship
the process of planning and managing a firm's long-term inves…
the mixture of debt and equity maintained by a firm
a firm's short-term assets and liabilities
a business owned by a single individual
Capital Budgeting
the process of planning and managing a firm's long-term inves…
Capital Structure
the mixture of debt and equity maintained by a firm
8 terms
Small Business Finance Chapter 1
Entrepreneur
Aspiring Entrepreneur
Lifestyle Entrepreneur
Growth Entrepreneur
One that takes the risk and liability of opening a new business
One that dreams of starting a new business
One that has developed an enterprise that fits their individu…
One that has the desire and the ability to grow as fast and a…
Entrepreneur
One that takes the risk and liability of opening a new business
Aspiring Entrepreneur
One that dreams of starting a new business
33 terms
Business Finance-Chapter 1
What long-term investments should the…
Capital budgeting
Capital structure
Working capital management
THREE important questions that are answered using finance are…
_______ is the process of planning and managing a firm's inve…
_______ is a specific mix of debt and equity the firm uses to…
_________ takes care of how the day-to-day finances of the fi…
What long-term investments should the…
THREE important questions that are answered using finance are…
Capital budgeting
_______ is the process of planning and managing a firm's inve…
11 terms
Chapter 1 Business finance
Financial Manager's three decisions
Primary activities of financial manager
what does the investment banker do to…
Basic forms of business organization
Investing decision (which projects)... financial decision (raise…
financial decisions and raising moneys
responsible for obtaining and selling securities.
sole proprietorship... partnership... corporations
Financial Manager's three decisions
Investing decision (which projects)... financial decision (raise…
Primary activities of financial manager
financial decisions and raising moneys
15 terms
Business Finance Chapter 1
Four basic areas
The 3 questions of "What is business f…
Chief Financial Officer (CFO)
Capital budgeting
1) Corporate finance... 2) Investments ... 3) Financial institution…
1) What long-term investments should you take on? (buildings,…
coordinates the activities of the treasurer (manages firm's c…
the process of planning and managing a firm's long-term inves…
Four basic areas
1) Corporate finance... 2) Investments ... 3) Financial institution…
The 3 questions of "What is business f…
1) What long-term investments should you take on? (buildings,…
21 terms
business finance chapter 1
goal of the financial manager
financial intermediaries
Money Market
capital markets
maximize shareholders wealth, which translates to stock price…
the middle person that channel funds from savers to investors…
defined as a mechanism, institutions and procedures that prov…
the market consists of a place
goal of the financial manager
maximize shareholders wealth, which translates to stock price…
financial intermediaries
the middle person that channel funds from savers to investors…
53 terms
Business Finance Chapter 1
FV =
Four facets of finance
Capital structure decision
Dividend decision
PV * (1 + i)
1. Academic finance... 2. Business finance... 3. Careers in finance…
Determining how the company will fund its operations
Determining whether or not to return money to shareholders or…
FV =
PV * (1 + i)
Four facets of finance
1. Academic finance... 2. Business finance... 3. Careers in finance…
Chapter 1 Business Finance
What long-term investments should the…
How should the firm raise funds for th…
How should short-term assets be manage…
Corporate Firm
Capital Budgeting
Capital Structure
Working Capital
The standard method for solving the problems encountered in r…
What long-term investments should the…
Capital Budgeting
How should the firm raise funds for th…
Capital Structure
27 terms
Finance and Business Chapter 1
Agency Costs
Agency Problem
Agent
Assets
Cost arising from the separation of ownership and control of…
Potential conflict of interest between agents (managers) and…
Anyone who acts for another (the principal) with the other's…
Items of value owned by a company; total assets equal debt pl…
Agency Costs
Cost arising from the separation of ownership and control of…
Agency Problem
Potential conflict of interest between agents (managers) and…
13 terms
principals of business and finance (chapter 1)
brainstorming
constructive criticism
criticism
customer
a group problem-solving technique in which members sit around…
offering valid and well-reasoned opinions about the work of o…
pointing out faults or shortcomings
someone who pays for goods and services
brainstorming
a group problem-solving technique in which members sit around…
constructive criticism
offering valid and well-reasoned opinions about the work of o…
13 terms
Business Finance Chapter 1
What are the 3 Legal forms of business…
General Partnership vs Limited Partner…
S Corporation vs C corp
What is a share of stock
Sole Proprietorship... -Single person owns business... -Disadvantag…
General: both people take the same amount of loss and put sam…
S corporations are usually meant for small businesses to help…
A piece of ownership in a company
What are the 3 Legal forms of business…
Sole Proprietorship... -Single person owns business... -Disadvantag…
General Partnership vs Limited Partner…
General: both people take the same amount of loss and put sam…
16 terms
Business and Finance Chapter 1
Financial Literacy
Economy
Credit
Loan
The knowledge and skillset necessary to be an informed custom…
A system by which goods and services are produced and distrib…
The granting of a loan and the creation of a debt; any form o…
A debt evidenced by a "note" which specifies the principal am…
Financial Literacy
The knowledge and skillset necessary to be an informed custom…
Economy
A system by which goods and services are produced and distrib…
49 terms
Business Finance Chapter 1 Test
Bond Markets
Capital Markets
Common Stock
Debt Securities
Market where bonds are traded and sold
Debt securities that last longer than a year
Ownership of shares and corporations
negotiable and tradable liability or loan. Can be bought or s…
Bond Markets
Market where bonds are traded and sold
Capital Markets
Debt securities that last longer than a year
26 terms
Chapter 1 DSM for Business Finance
One of the most fundamental principles…
Financial managers __________ when mak…
The primary goal of the financial mana…
Financial managers __________ when mak…
CORRECT ANSWER:... a time
CORRECT ANSWER:... should always engage in ethical behavior
CORRECT ANSWER:... maximize shareholder wealth
CORRECT ANSWER:... should always engage in ethical behavior
One of the most fundamental principles…
CORRECT ANSWER:... a time
Financial managers __________ when mak…
CORRECT ANSWER:... should always engage in ethical behavior
22 terms
Business Finance Chapter 1 Vocabulary
Bond
Budget
Deposit institution
Diversification
money that is borrowed by a company or government
A wise spending plan
accept deposits for people and businesses to use in the future
investing in a variety of assets
Bond
money that is borrowed by a company or government
Budget
A wise spending plan
25 terms
Glencoe Business and Personal Finance Chapter 1
economics
opportunity cost
scarcity
factors of production
the study of the decisions that go into making, distributing,…
what you give up to get something else
economic principal requiring that people decide which goods a…
resources needed to produce goods and services
economics
the study of the decisions that go into making, distributing,…
opportunity cost
what you give up to get something else
26 terms
Business Finance - Chapter 1 (Principles of Finance)
Corporation
Debt
Dividends
Equity
A business entity that legally functions separate and apart f…
Money that has been borrowed and must be repaid. This include…
The portion of corporation's earnings that are distributed to…
The ownership interest in a corporation. It is the stockholde…
Corporation
A business entity that legally functions separate and apart f…
Debt
Money that has been borrowed and must be repaid. This include…
25 terms
Glencoe Business and Personal Finance Chapter 1
economics
opportunity cost
scarcity
factors of production
the study of the decisions that go into making, distributing,…
what you give up to get something else
economic principal requiring that people decide which goods a…
resources needed to produce goods and services
economics
the study of the decisions that go into making, distributing,…
opportunity cost
what you give up to get something else
25 terms
Business and Personal Finance Chapter 1
economics
opportunity cost
scarcity
factors of production
the study of the decisions that go into making, distributing,…
what you give up to get something else
economic principle that requires people to decide which goods…
resources necessary to produce goods and services
economics
the study of the decisions that go into making, distributing,…
opportunity cost
what you give up to get something else
23 terms
Small Business Finance - Chapter 1
The process of planning, organizing, o…
5 Reasons To Become An Entrepreneur
Entrepreneurial Traits
Someone who starts, grows and sells se…
Entrepreneurship
"Do your own thing", flexibility, Independence, Financial rew…
1. Ambiguity vs Planning... 2. Creativity vs Discipline... 3. Urgen…
Serial Entrepreneur
The process of planning, organizing, o…
Entrepreneurship
5 Reasons To Become An Entrepreneur
"Do your own thing", flexibility, Independence, Financial rew…
8 terms
Business & Personal Finance Chapter 1
Interest
Debt
Consumer
Loan
Fee payed by a borrower for the use of money.
Obligation of repayment from one party to another.
Buyer of goods or service
Debt evidenced by a "note".
Interest
Fee payed by a borrower for the use of money.
Debt
Obligation of repayment from one party to another.
74 terms
Business Finance Chapter 1-6
Capital Budgeting
Capital Structure
Sole Proprietorship
Working Capital
The process of planning and managing a firm's long-term inves…
The mixture of debt and equity maintained by a firm
A business owned by a single individual
A firm's short-term assets and liabilities
Capital Budgeting
The process of planning and managing a firm's long-term inves…
Capital Structure
The mixture of debt and equity maintained by a firm
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