Chapter 01 - 007 Flashcards

0
Q

A company exists to …

A

Z

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1
Q

The 4 major activities of a company

P15

A

1.
2.
3.
4.

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2
Q

Business plan

A
  1. Capture …

2. Assists …

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3
Q

Sources of information on a company’s business plan

P15

A

Z

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4
Q

How can the information from financial statements help us?

P16

A

Z

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5
Q

Why does a company require financing?

A

Z

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6
Q

Financing activities

P16

A
  1. Refers to …

2.

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7
Q

Main sources of external financing

A

1.

2.

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8
Q

Issues considered by a company in looking to financial markets

A

1.
2.
3.
4.

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9
Q

Impacts of the decisions on those issues Ina the prior question

P16

A

Z

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10
Q

Return

P16

A

Z

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11
Q

Earnings distribution

A

Z

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12
Q

How can dividends be paid

A

Z

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13
Q

Dividend payout

A

Z

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14
Q

Earnings reinvestment

A

Z

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15
Q

Earnings retention rate

A

Z

16
Q

Forms of equity financing

P16

A

1.
2.
3.

17
Q

Private offerings of shares

P16

A

Z

18
Q

The main benefit of public offerings of shares

A

Z

19
Q

Two types of creditors

A

1.

2.

20
Q

Debt financers

A

Z

21
Q

Operating creditors

A

Z

22
Q

How is creditor financing different from equity financing

P17

A

1.
2.
3.