Lesson2 Flashcards
entity in which skills energy and enterprise of owners and partners are linked with money its sources and investment and its access is measured by wealth or profit it gets
business
studies money and its management
finance
it is concerned with creation of financial asset
financial institution
concerned with the analysis individual assets and the planning for well diversified portfolio
investment
studies the role of the financial manager and his ability to meet obligation identifying the best sources of funds allocating resources among available investment alternatives
business finance
involve generating funds internally or from external sources
financing decision
shares of stock with dividends that are paid out to shareholders if the company address bankruptcy these tax are first to be paid before common stockholders
preferred stock
a complex structured finance product that is backed by a pool of loans and other assets and sold to institutional investors
collateralized debt obligation
a short term deb security to access capital in the international market
euro commercial paper
represent claims on the money generated by pools of mortgage loans
mortgage backed securities
aware necessary funds and ensure that this funds being used effectively
financial manager
focuses on selecting the best investment project
capital budgeting
process of determining how a company finances its operations and growth by combining debt and equity
capital structuring
the portion of profit left over all after expenses paid dividends
retained earnings
refers to the administration of the firms short term assets inventory short term liabilities
working capital management
