FINANCE Flashcards
Work with financial assets such as stocks and bonds
* Value of financial assets, risk versus return, and asset allocation
investment
Companies that specialize in financial matters
financial institution
commercial and investment, credit unions, savings and loans
banks
an area of specialization within each of the areas discussed so far; allow you to work in other countries or at least travel on a regular basis; Need to be familiar with exchange rates and political risk
* Need to understand the customs of other countries; speaking a foreign language fluently is also helpful
international finance
why study finance
marketing, accounting, management, personal finance
The top financial manager within a firm is usually the Chief Financial Officer (CFO)
true
oversees cash management, credit management, capital expenditures, and financial planning
treasurer
oversees taxes, cost accounting, financial accounting, and data processing
controller
forms of business organization
sole proprietorship, partnership (general, limited), corporation (stock, non stock, one-person corporation)
Types of Business Entities in the Philippines
domestic corporation & foreign corporation
Principal hires an agent to represent its interests
– Stockholders (principals) hire managers (agents) to run the company
agency relationship
Conflict of interest between principal and agent
agency problem
