Business Quizz/test ch18

the function in a business that aquires funds for the firm and manages those funds within the firm

the job of managing a firms resources so it can meet its goals and objectives

mangers who make recommentations to top executives regarding straregies for improving the financial strength of a firm.

forecast that predicts revenues, costs, and expenses for a period of one year or less

forecast that predicts the cash inflows and outflows in future periods, usually months or quarters.

forecast that predicts revenues, costs, and expenses for a period longer than 1 year, and sometimes as far as 5 or 10 years into the future.

a financial plan that sets forth managements expectations, and on the basis of those expectations, allocates the use of specific resources throughout the firm.

a budget that highlights a firms spending plans for major asset purchases that often require large sums of money.

a budget that estimates a firms projected cash inflows and outflows that the firm can use to plan for any cash shortages or surpluses during a given period

the budget that ties together all of a firms other budgets; it is the projection of dollar allocations to various costs and expenses needed to run or operate the business, given projected revenues.

a process in which a firm periodically compares its actual revenues, costs, and expenses with its budget.

major investments in either tangible long-term assets such as land, buildings, and wquipment or intangible assets such as patents, trademarnks, and copyrights

funds raised through various forms of borrowing that must be repaid.

funds raised from operations within the firm or through the sale of ownership in the firm.

borroewd capital that will be repaid within one year

borrowed capital that will be repaid over a specific period longer than one year.

the practice of buying goods and services now and paying for them later.

a written contract with a promise to pay a suplier a specific sum of money at a definite time.

a loan backed by something valuable, such as property.

a loan thats not backed by any specific assets.

a given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available.

a line of credit that is guaranteed by the bank

organization that make short-term loasn to borrowers who offer tangivle assets as collateral.

the process of selling accounts receivable for cash.

unesecured promissory notes of $100,000 and up that mature in 270 days or less.

a promissory note that requires the borrower to repay the loan in specified installments.

the principle that the greater the risk a lender takes in making a loan, the higher the interest rate required.

the terms of agreement in a bond issue?

a bond issued with some form of collateral

a bond backed only by the reputation of the issuer; also called a debenture bond.

money that is invested in new or emerging companies that are perceived as having great profit potential.

raising needed funds through borrowing to increase a firms rate of return.

the rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders.