Exam (elaborations)
BUSN 11 Chapter 9 EXAM PREP ALREADY
- Course
- Institution
BUSN 11 Chapter 9 EXAM PREP ALREADY
[Show more]
Seller
Follow
Content preview
BUSN 11 Chapter 9 EXAM PREP ALREADYPASSED
Finance - =Functional area of business that is concerned with finding the best sources and uses of
financial capital. Goal of financial management is to maximize the value of the firm to its
owners.
Financial Capital - =Funds that a firm uses to acquire assets and finance its operations
Shareholder Value and Social Responsibility - =A socially responsible firm has an obligation to
respect the needs of all stakeholders. Being socially responsible requires a long-term
commitment to the needs of different stakeholders.
Fiduciary Duty of Financial Managers - =Managers should make decisions that are most
consistent with the interests of ownership when conflicts arise
Risk - =degree of uncertainty regarding the outcome of a decision
Risk-Return Tradeoff - =observation that financial opportunities that offer high rates of return
are riskier than those offering lower rates of return
Financial Ratio Analysis - =Computing ratios that compare values of key accounts listed on
financial statements.
Liquidity Ratios - =measure the ability of a firm to obtain the cash it needs to pay its short-term
debt as they come due
Liquid Asset - =can quickly be converted into cash with little risk of loss
Asset Management Ratios - =measure how effectively a firm uses its assets to generate revenue
, Leverage Ratios - =measure the extent to which a firm relies on debt financing in its capital
structure
Profitability Ratios - =measure the rate of return a firm earns on various measures of investment
Budgeted Income Statement - =shows how a firm's budgeted sales and costs will affect expected
net income
Budgeted Balance Sheet - =Forecasts the types and amounts of assets of a firm will need to
implement its future plans and how the firm will finance the assets.
Cash Budget - =Detailed forecast of future cash flows. Helps financial managers identify when
their firm is likely to experience temporary shortages or surpluses of cash.
Trade Credit - =Granted by sellers when they deliver goods and services to customers without
requiring immediate payment. Form of spontaneous financing.
Factor - =Company that provides short-term financing to firms by purchasing their accounts
receivables at a discount
Short-Term Bank Loans - =line of credit and revolving credit agreement
Line of Credit - =Arrangement between a firm and bank in which bank pre-approves credit up to
a specified limit, provided that the firm maintains an acceptable credit rating
Revolving Credit Agreement - =Bank makes a binding commitment to provide funds up to a
specified credit limit at any time during the term of the agreement. Guaranteed line of credit.
Commercial Paper - =short-term promissory notes issued by large corporations
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller hurryben. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $9.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
81531 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now