BUSINESS FINANCE WEEK 1 Flashcards
Is define as the art and science of managing money and includes activities such as investing, budgeting, borrowing, lending, saving and forecasting.
FINANCE
The allocation of income and expenses over a span of time.
BUDGETING
An acquisition of monetary asset purchased with the idea that the asset will provide income in the future or will be later be sold at a higher price for a profit.
INVESTMENT/INVESTING
Include income, profits, credit, venture capital, donations, grants, savings, and taxes.
SOURCE OF FUNDS
The financial gain from business activity minus expenses.
PROFITS
A person, company or institutions that owns at least one share of company stocks.
SHAREHOLDERS/STOCKHOLDERS
Putting money aside for future use
SAVINGS
The act of considering something carefully.
DECISIONS
The process of thinking about the activities required to achieve a desired goal.
PLANNING
Requires the company to have an organizational structure to make sure that each component in the organizational chart does its part for the overall welfare of the company.
ORGANIZING
Involves laying the company’s goals and taking course of action in order for the company to reach its goals.
PLANNING
Refers to the performance of the company that it adheres to its standard operating procedures and should be in compliance with company policies, rules and regulation as well as government standards and
CONTROLLING
means quality leadership of the managers in every department of the company. Managers are expected to set good work ethics so that employees will do their part to achieve the company’s goals.
DIRECTING
A business owned by one person and operated for his or her own profit.
SOLE PROPRIETORSHIP
A business owned by two or more people and operated for profit.
PARTNERSHIP
