Lesson 1: Introduction to Business Finance Flashcards
Is the process of raising funds or capital for
any kind of expenditure. It is the process of
channeling various funds in the form of
credit, loans, or invested capital to those
economic entities that most need them or
can put them to the most productive use.
finance
Is a process of looking at a business’ estimated
incomes and expenditures
over a specific period in the future.
budgeting
(the money that comes into the business
from selling products and services
incomes
the money that goes out form paying expenses and
bills
expenditures
an asset acquired or invested in to build
wealth and save money from the hard earned
income or appreciation.
investment
The act of distributing
resources into something to generate income
or gain profits.
investment
Refers to the funds that are being used to fund the
specific transaction in hand.
source of funds
The origin of the funds
used for the transactions or activities that occur
within the business relationship or occasional
transaction.
source of funds
a security that represents the ownership of a fraction of the issuing corporation
stocks
stocks are also known as
equity
units of stock are called
shares
they oversee the financial health
of an organization and help ensure its
continued viability.
financial managers
They supervise important
functions, such as monitoring cash flow,
determining profitability, managing expenses
and producing accurate financial information.
financial managers
3 roles of financial managers
raising funds, understanding capital markets, allocating funds, profit planning
Is the practice of handling a company’s finances in a
way that allows it to be successful and compliant
with regulations. That takes both a high-level plan
and boots-on-the-ground execution.
financial management
