logo image

Corporate Finance Ch.1 The Goals & Functions of Financial Management

Finance is about making decisions that focus on creating ____ within the firm.
Value
Finance builds upon the disciplines of economics and ?
Accounting
Economics provides theories about economic system and ?
Decision Making
What long term investments or projects the firm should undertake is what kind of decision?
Capital Budget Decision
How the firm should pay for these assets, issuing equity or debt are what kinda decisions?
Capital Structure Decision
How much cash or inventory the firms hold carry is what kind of decision?
Working Capital Management Decision
The decisions made are within what kind of framework?
Risk-Return
The primary goal of financial management is what?
Maximize shareholder wealth
What should these goals be measured by?
Share Price
The goal of maximizing shareholder wealth may conflict with?
interests of management (their compensation) and social/ethical goals
This theory is about the potential conflict between shareholders and managers.
Agency Theory
The goal of shareholder wealth maximization can be consistent with a concern for?
Social Responsibility
Finance functions include:
corporate finance, banking, securities, money management, financial planning
This is when there is one owner, largest in actual number but smallest in total sales revenue
Sole Proprietorship
This is when there are two or more owners.
Partnership
Legal entity unto itself, smallest in actual number but largest in total sales revenue.
Corporation
This type of market are those markets for governments to borrow funds for public activities.
Public Financial Markets
These markets are those for corporations to raise funds.
Corporate Financial Markets
These markets deal in short term securities. Less than one year.
Money Markets
These markets deal in long term securities.
Capital Markets
This market is where a firm issues new bonds or shares.
Primary Market
These markets are where investors buy and sell outstanding bonds or shares
Secondary Market
These are representations of ownership or equity in the company
Stock (Share)

Need essay sample on "Corporate Finance Ch.1 The Goals & Functions of Financial Management"? We will write a custom essay sample specifically for you for only $ 13.90/page

Can’t wait to take that assignment burden offyour shoulders?

Let us know what it is and we will show you how it can be done!
×
Sorry, but copying text is forbidden on this website. If you need this or any other sample, please register

Already on Businessays? Login here

No, thanks. I prefer suffering on my own
Sorry, but copying text is forbidden on this website. If you need this or any other sample register now and get a free access to all papers, carefully proofread and edited by our experts.
Sign in / Sign up
No, thanks. I prefer suffering on my own
Not quite the topic you need?
We would be happy to write it
Join and witness the magic
Service Open At All Times
|
Complete Buyer Protection
|
Plagiarism-Free Writing

Emily from Businessays

Hi there, would you like to get such a paper? How about receiving a customized one? Check it out https://goo.gl/chNgQy

We use cookies to give you the best experience possible. By continuing we’ll assume you’re on board with our cookie policy