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finales cuarto sem > ffc > Flashcards

ffc Flashcards

1
Q

Define risk in a financial context

A

Probability of economic losses due to unforeseen events or market fluctuations

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2
Q

What is transactional risk?

A

Risk of conducting operations abroad

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3
Q

What does business risk refer to?

A

The risk related to the industry

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4
Q

Define exchange rate risk

A

Where the value of the firm’s operation or investment will be affected by changes in exchange rate

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5
Q

Who is an arbitrageur?

A

Person involved in the process of buying and selling to make transactions less risky

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6
Q

What is a secure loan?

A

A loan that is backed by collateral

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7
Q

What characterizes an insecure loan?

A

A loan without collateral

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8
Q

What are the 5 C’s of credit?

A
  • Character
  • Capacity
  • Collateral
  • Conditions
  • Capital
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9
Q

What is an example of unsecured debt?

A

Trade Credit

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10
Q

Define commercial paper

A

Represents secure promissory notes issued to the public by large corporations

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11
Q

What is a tax shield?

A

Savings based on deductible expenses to reduce taxable income

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12
Q

What is considered short term in finance?

A

Less than one year

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13
Q

List examples of short-term financing methods

A
  • Trade credit
  • Commercial paper
  • Tax shield
  • Certificate of deposit
  • Factoring
  • Pledging
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14
Q

What is considered long term in finance?

A

More than one year

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15
Q

List examples of long-term financing methods

A
  • Bonds
  • Mortgage
  • Shareholders equity
  • Leasing
  • Bank loan
  • Safety stocks
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16
Q

What is the principal objective of promoting growth in finance?

A

To promote growth

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17
Q

Define safety stock

A

The amount of capital saved by owners for emergencies, internal, long term

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18
Q

Sources of unsecured terms include:

A
  • Trade credit
  • Commercial paper
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19
Q

What is a source of secure debt?

A

Certificate of deposit

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20
Q

What technique compares costs and profits?

A

Cost benefit analysis

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21
Q

What does a cash discount of 5/15 net 50 mean?

A

5% discount if paid within 15 days, with a maximum payment term of 50 days

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22
Q

What are Eurodollars?

A

U.S. dollars held by foreign banks or institutions outside of the USA

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23
Q

Define permanent investment

A

Investment that the company hopes to maintain longer than one year

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24
Q

What is financial risk?

A

Additional risk placed on common stockholders due to financing with debt

25
Q

What is net working capital?

A

Current assets minus current liabilities

26
Q

What is an stock change?

A

An organization that operates in the securities market for transactions

27
Q

Define crowdfunding

A

FINTEC managing financing services through the internet, including debt platforms, equity investment, rewards, and donations

28
Q

What are the most important securities?

A
  • Shares
  • Bonds
29
Q

Define shares

A

Units of ownership in a company that provide a percentage of the company and its profits

30
Q

What are bonds?

A

A loan made by an investor to a company, government, or municipality in exchange for interest payments

31
Q

What does ONG stand for?

A

Organización no gubernamental (nonprofit institution)

32
Q

What is the BID?

A

Banco Interamericano de desarrollo (Inter-American Development Bank)

33
Q

What is a financing model?

A

Ensures an adequate and regular source of funding for healthy organization within nonprofit ethics

34
Q

What is a heartfelt connector?

A

Popular causes related to the environment, international issues, and medical research

35
Q

Define beneficiary builder

A

Model that includes hospitals and universities

36
Q

What is a member motivator?

A

Donors motivated by issues integral to their daily lives

37
Q

What is a public provider?

A

Associations providing services using a Public Service Provider model

38
Q

What is a beneficiary broker?

A

A nonprofit administering rental assistance voucher programs

39
Q

Why is donor relations important?

A

Building and maintaining strong relationships with donors is crucial for sustainable funding

40
Q

What is financial sustainability for NGOs?

A

Achieving lasting influence through diversifying funding sources and accumulating reserves

41
Q

What is the National Infrastructure Fund’s objective?

A

To provide financial help for public and private sector infrastructure

42
Q

What must NGOs adhere to?

A

Applicable financial regulations and legal requirements

43
Q

What is multilateral development banking?

A

Organizations like IDB, IFC, WB that help various projects

44
Q

What does the International IBRD do?

A

Provides financial products to help countries reduce poverty

45
Q

What is AIF’s goal?

A

To address climate impacts in client countries

46
Q

What does IFC stand for?

A

International Finance Corporation

47
Q

What does MIGA do?

A

Brings together guarantee products and experts from the World Bank Group

48
Q

What is venture capital?

A

Funds that invest in companies with high growth potential

49
Q

What is INDESOL?

A

National Institute for Social Development funding NGOs for community development projects

50
Q

What role do private companies play in NGO funding?

A

Corporate donations through CSR programs

51
Q

Name some foundations that fund NGOs in Mexico

A
  • Ford Foundation
  • Kellogg Foundation
  • Rockefeller Foundation
  • Open Society Foundations
52
Q

What are state trusts and programs?

A

Specific supports for social projects led by NGOs in Mexico

53
Q

What are business angels?

A

Private investors financing new companies in exchange for equity

54
Q

What is development banking?

A

Providing medium and long-term financing to serve the public interest

55
Q

Name some commercial banks

A
  • BBVA
  • Banamex
  • Santander
56
Q

What connects corporations seeking financing with investors?

A

Investment banking

57
Q

Define common stock

A

A security that represents ownership in a corporation

58
Q

What are the types of leverage?

A
  • Operational
  • Financial
59
Q

List classifications of financing

A
  • Long and short
  • External and internal

finales cuarto sem (3 decks)

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