Treasury Flashcards
Payments made by a borrower for the use of money calculated as a percentage of the capital borrowed
Interest
Inability of the company to maintain competitive position and stability of earnings
Business Risk
Is the result of operating conditions imposed upon the firms by economic circumstances
External Business Risk
Largely Associated with the efficiency with which firm conducts its operations
Internal Business Risk
-Process of planning and controlling long-term investment.
- provides the decision framework for the investment choices of business firms
Capital Budgeting
-Length of time that it takes for an investment to be recovered through the cash inflows it generates
-refers to the number of years an investment is returned back through cash inflow.
Payback Period
Is the amount by which the proceeds from sales of an investment exceed the original purchase price
Capital Gain
Process is a never-ending story analyzing, evaluating, implementing, and monitoring
Investment Process
Rigorous analysis of earning power of investment in selecting investment. It might include company analysis, economic analysis and industry analysis.
Fundamental Approach
Includes sales, revenue, expenses for the covered period of operations
Operating Budget
Can be defined as the commitment of funds to one or more assets that will be held over some future time period.
Investment
Relates to purchase of durable consumer goods.
Consumer Concepts
Represent Legal claims to some future benefits like corporate stocks, bonds, pension funds, saving account and other money market funds.
Financial Assets
Tangible asset investment whose value depend on particular property.
Real Asset ( Physical Asset)
Corporate strategy that allows a company to combine its asset to another company or to acquire another company.
Merger and Acquisition
