Business: Chapter 19

a legal document that details all the conditions relating to a bond issue

a financial statement that projects income and/or expenditures over a specified future period

a financial statement that estimates a firm’s expenditures for major assets and its long-term financing needs

a financial statement that estimates cash receipts and cash expenditures over a specified period

the movement of money into and out of an organization

a high-level corporate executive who manages a firm’s finances and reports directly to the company’s chief executive officer or president

a short-term promissory note issued by a large corporation

stock whose owners may vote on corporate matters but whose claims on profits and assets are subordinate to the claims of others

a bond that can be exchanged, at the owner’s option, for a specified number of shares of the corporation’s common stock

preferred stock that an owner may exchange for a specified number of shares of common stock

a corporation’s written pledge that it will repay a specified amount of money with interest

a bond backed only by the reputation of the issuing corporation

borrowed money obtained through loans of various types

money received from the owners or from the sale of shares of ownership in a business

a firm that specializes in buying other firms’ accounts receivable

the use of borrowed funds to increase the return on owners’ equity

all the activities concerned with obtaining money and using it effectively

a plan for obtaining and using the money needed to implement an organization’s goals

method of financing in which title to merchandise is given to lenders in return for short-term financing

when a corporation sells common stock to the general public for the first time

an organization that assists corporations in raising funds, usually by helping to sell new issues of stocks, bonds, or other financial securities

an agreement by which the right to use real estate, equipment, or other assets is transferred temporarily from the owner to the user

money that will be used for longer than one year

the date on which a corporation is to repay borrowed money

a corporate bond secured by various assets of the issuing firm

an assigned (and often arbitrary) dollar value printed on a stock certificate

stock whose owners usually do not have voting rights but whose claims on dividends and assets are paid before those of common-stock owners

the lowest rate charged by a bank for a short-term loan

occurs when stock and other corporate securities are sold directly to insurance companies, pension funds, or large institutional investors

a written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date

a bond registered in the owner’s name by the issuing company

the portion of a corporation’s profits not distributed to stockholders

a ratio based on the principle that a high-risk decision should generate higher financial returns for a business and more conservative decisions often generate lesser returns

bonds of a single issue that mature on different dates

money that will be used for one year or less

a sum of money to which deposits are made each year for the purpose of redeeming a bond issue

the time lag between the actual production of goods and when the goods are sold

a promissory note that requires a borrower to repay a loan in monthly, quarterly, semiannual, or annual installments

a type of short-term financing extended by a seller who does not require immediate payment after delivery of merchandise

an individual or an independent firm that acts as a bond owners’ representative

financing that is not backed by collateral

a budgeting approach in which every expense in every budget must be justified