Lesson 1 Flashcards
(T/F) Finance is the science and art of managing money and is concerned with individual’s decisions about how much of their earnings they spend, how match the save, and how they invest their savings.
T
(T/F) Managerial finance is the area of finance concerned with the design and delivery of ADVICE and financial products to individuals businesses and governments.
(F)
* Financial Services
Two Career Opportunities in Finance.
A.) Financial Services & Managerial finance
B.) Financial Services & Managerial Services
C.) Financial finance & Managerial finance
D.) Financial finance & Managerial Services
A.) Financial Services & Managerial finance
(T/F) Managerial finance is concerned with the DUTIES of the financial MANAGER working in a business.
T
Prepares the firm’s financial PLAN and budgets.
A.) Credit analyst/manager
B.) Cash manager
C.) Financial analyst
D.) Capital expenditures manager
C.) Financial analyst
Evaluates and recommends proposed long-term investments. May be involved in the financial aspects of IMPLEMENTING approved investments.
A.) Cash manager
B.) Financial analyst
C.) Capital expenditures manager
D.) Credit analyst/manager
C.) Capital expenditures manager
Manages specific FOREIGN operations and the firm’s exposure to fluctuations in exchange rates.
A.) Foreign exchange manager
B.) Pension fund manager
C.) Credit analyst or manager
D.) Cash manager
A.) Foreign exchange manager
The one who checks if creditors are qualified.
A.) Credit manager
B.) Credit analyst
C.) Cash manager
D.) Financial analyst
A/B - Credit analyst / manager
The one who maintains and controls the firm’s daily cash balances.
A.) Capital expenditures manager
B.) Cash manager
C.) Project finance manager
D.) None of the above
B.) Cash manager
A business owned by one person and operated for his or her own profit.
Sole proprietorship
An entity created by law.
Corporation
A business owned by two or more people and operated for profit.
Partnership
It is the condition a sole proprietorship or general partnership, giving creditors the right to make claims against the owner’s personal assets to recover debts owed by the business
Unlimited Liability
It is a written contract used to formally establish a business partnership.
Articles of partnership
A corporate official that is responsible for managing the firm’s day-to-day operations and carrying out the policies established by the BOD.
President or CEO
Periodic distributions of cash to the stockholders of a firm.
Dividends
The owners of a corporation
Stockholders
A legal provision that limit stockholders liability for a corporations depth to the amount they initially invested in the film by purchasing stock.
Limited liability
The purest and most basic form of corporate ownership.
Common stock
Group elected by the firm stockholders and typically responsible for approving strategic goals and plans, setting general policy, guiding corporate affairs, and approving major expenditures.
Board of directors (BOD)
What are the two managers under the Vice President of Finance or CFO?
Treasurer and Controller
An autonomous and duly registered association of persons with a common bond of interest, who have voluntarily joined together to achieve a lawful common social or economic end.
Cooperative
Four legal forms of business organization.
Sole proprietorship, partnership, corporation, and cooperative
Form of legal business organization where in the owner receives all the profit and sustains all losses
Sole proprietorship
