Term
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Definition
| the process of planning and managing a firms long term assets |
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Term
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Definition
| the mixture of debt and equity maintained by a firm |
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Term
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Definition
a firms short term assets and liabilities such as inventory and money owed to suppliers. some questions that must be answered:how much cash inventory to keep on hand? should we sell on credit to customers? how will we obtain short term financing? |
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Term
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Definition
| simple and least regulated type of organization owned by a single individual.The owner keeps all profits but is also subject to unlimited liability and all income is taxed as personal income. |
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Term
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Definition
| similar to a sole propreitorship but there are 2 or more owners who share liability as well as gains or losses. A limited partnership has one or more partners with unlimited liability and limited partners whos liability only extends to the contributed amount. |
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Term
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Definition
| a business created as a legal "person" seperate and distinct from its owners, and has as many right, duties, and privileges as an actual person. forming a corp requires the forming of articles of incorporation and a set of bylaws. |
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Term
| what is the goal of financial management in a Corp. |
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Definition
| to maximixe the current value per share of an existing stock and maximize the market value of existing owners equity. keep in mind long term vs. short term |
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Term
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Definition
| the relation between the stockholders and management |
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Term
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Definition
| the possibility of conflict of interest between the owners and the management of a firm |
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