Exam (elaborations)
Test Bank for Vocab- Chapters 1-6; Fundamentals of Corporate Finance 6th edition by Jonathan Berk
- Course
- Institution
Test Bank for Vocab- Chapters 1-6; Fundamentals of Corporate Finance 6th edition by Jonathan Berk
[Show more]
Content preview
Vocab- Chapters 1-6; Fundamentals ofCorporate Finance
Capital Budgeting: _______
Ch. 1 - ANS_____: The process of planning and managing a firms long-term investments
Capital Structure: _______
Ch 1 - ANS_____: The mixture of debt and equity maintained by a firm
Working Capital: _______
Ch 1 - ANS_____: A firm's short term assets and liabilities
Partnership: _______
Ch 1 - ANS_____: A business formed by two or more individuals or entities
Sole Proprietorship: _______
Ch 1 - ANS_____: A business owned by a single individual
Corporation: _______
These are also called: ____, ____, ____
Ch 1 - ANS_____: A business created as a distinct legal entity composed of one or more
individuals or entities
These are also called joint stock companies, public limited companies, or limited liability
companies.
Sarbanes-Oxley: _______. Passed in ____.
Ch 1 - ANS_____: Intended to protect investors from corporate abuses. Passed in 2002.
Agency Problem: _______
Ch 1 - ANS_____: The possibility of conflict of interest between the stockholders and
management of a firm
, Stakeholder: _______
Ch 1 - ANS_____: Someone other than a stockholder or creditor who potentially has a claim on
the cash flows of a firm.
Primary Market: _______. 2 types: _____.
Ch 1 - ANS_____: The corporation is the seller, and the transaction raises money for the
corporation. 2 types: Public and Private.
Secondary Market: _______
Ch 1 - ANS_____: Involves one owner or creditor selling to another.
Balance Sheet: _______. ____ on the left side, ____ on the right.
Ch 2 - ANS_____: Financial statement showing the firm's accounting value on a particular date.
Assets on the left side, Liabilities and Owner's Equity on the right.
Net Working Capital: _______
Ch 2 - ANS_____: Current assets - current liabilities
Income Statement: _______
Ch 2 - ANS_____: Financial statement summarizing a firm's performance over a period of time
Noncash Items: _______
Ch 2 - ANS_____: Expenses charged against revenues that do not directly affect cash flow
(such as depreciation)
Average Tax Rate: _______
Ch 2 - ANS_____: Total taxes paid / total taxable income
Marginal Tax Rate: _______
Ch 2 - ANS_____: Amount of tax payable on the next dollar earned
Cash Flow From Assets: _______. Consists of : ___, ___, & ___.
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 AllLegitExams. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $10.49. You're not tied to anything after your purchase.
Can Stuvia be trusted?
4.6 stars on Google & Trustpilot (+1000 reviews)
73918 documents were sold in the last 30 days
Founded in 2010, the go-to place to buy study notes for 14 years now