lesson 1 Flashcards
It is important to manage risks in business
Finance
Maximize the value of share stocks
Financial management
Important especially in the financial aspect of the business
Organizational structure
Elects the board of directors, each share held is equal to one boting right
Shareholders
Highest policy making body in corporation
Board of Directors
Approving the information and other disclosures reported in the financial statements
President (Ceo)
Formulating marketing strategies and plans.
Vp for marketing
Ensuring production meets customer demands.
Vp for production
Coordinating the functions of administration, finance, and marketing departments.
Vp for administration
determine the appropriate capital structure of the company.
Vp for finance
refers to hos much of your total assets financed by debt and how much is financed by equity.
Capital structure
bought using cash from our pockets,
Equity
used money from our borrowings,
Debt
long-term investments and working capital-which deals with the day-to-day operations of the company.
Financing decisions
minimize the probability of failure,
Investing decisions