Topic 1

Question 1

net working capital

Answer 1

current assets less current liabilities.

Question 2

capital budgeting

Answer 2

the process of planning and managing a firm’s investment in non-current assets.

Question 3

capital (or financial) structure

Answer 3

the mix of debt and equity maintained by a firm.

Question 4

agency problem

Answer 4

the possibility of conflicts of interest between the shareholders and management of a film

Question 5

stakeholders

Answer 5

someone other than a shareholder or debt-holder who potentially has a claim on a firm

Question 6

money markets (dealer markets)

Answer 6

financial markets where short-term debt securities are bought and sold

Question 7

capital markets

Answer 7

financial markets where long-term debt and equity securities are bought and sold

Question 8

primary market

Answer 8

a market for new issues of securities where cash proceeds go to the issuer of the security.

Question 9

secondary market

Answer 9

the market where previously issued securities are traded.

Question 10

critical (adj) /ˈkrɪt.ɪ.kəl/

Answer 10

of the greatest importance to the way things might happen:

The president’s support is critical (to this project).

Question 11

annuity (CN) /əˈnjuː.ə.ti/

Answer 11

a fixed amount of money paid to someone every year, usually until their death, or the insurance agreement or investment that provides the money that is paid:

an annuity policy

annuity income

She receives a small annuity