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Question 1

Wat is het verschil tussen investment decisions en financing decisions

Answer 1

Investment decisions: spend money (investments) = purchase of real assets Financial decisions: raise money for investments = sale of financial assets (Intangible) stocks and bonds

Question 2

Wat is het verschil tussen equity en debt investors

Answer 2

EQUITY INVESTORS: Investors to put up cash in exchange for a share of future profits
DEBT INVESTORS: Investors to put up cash with a promise to pay back the cash + interest

Question 3

Wat is capital structure decision

Answer 3

The decision for a company to fund money and choose for equity or debt investors

Question 4

Wat is het verschil tussen een private en public cooperation

Answer 4

Private: closely held. When a corporation is first established, its shares may be privately owned by a small group of investors; in this case shares are not traded in public markets (besloten)
Public: opposite (naamloos)

Question 4

Wat is market value/ capitalisation

Answer 4

Shares keer price

Question 5

Wat zijn 3 redenen waarom maximizing profit een slecht doel is

Answer 5

1: Writing off a bad investment may reduce this year’s profits but increase profits in future yearsTrade off between one year and another
2: Investments can increase profits but reduce shareholder value. By taking risks you can make more profit but the shareholder value can reduce
3: Profits can be affected by accounting rules, so a decision that increases profits using one set of rules may reduce profits using another. Different accounting rules can lead to different profits

Question 6

Wat is opportunity cost

Answer 6

Money shareholders will miss when the firm decides to reinvest their profit in the firm and not pay it to the shareholders

Question 7

Wat is het agency problem

Answer 7

Managers are agents for stockholders and are tempted to act in their own interests rather than maximizing value. For example reducing risk but also reducing profit

Question 8

Wat is initial public offering

Answer 8

A company selling shares of stock to the general public

Question 9

Wat is Capital expenditure or budgeting

Answer 9

Decision to invest in tangible or intangible assets

Question 10

Wat zijn real assets

Answer 10

Assets used to produce goods and services

Question 10

Wat is shelf registration

Answer 10

Registrering securities and waiting for the right moment go to the market