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Definition
| The fucntion in a business that acquires funds for the firm and manages those funds within the firm |
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| The job of managing a firm's resources so it can meet its goals and objectives |
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| Managers who make recommendations to top executives regarding strategies for improving the financial strength of a firm |
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| Forecast that predicts revenues, costs, and expenses for a period of one year or less |
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| Forecast that predicts the cash inflors and outflows in future periods, usually months or quarters |
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| Forecast that predicts revenues, costs, and expenses for a period longer than 1 year and sometimes as far as 5 or 10 yrs into the future |
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| A financial plan that sets forth management's expectations, and, on the basis of those expectation, allocates the use of specific resources throughout the firm |
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| A budget that highlights a firm's spending plans for major asset purchases that oftern require large sums of money |
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| A budget that estimates a firm's projected cash inflows and outflows that the firm can use to plan for any cash shortages or surpluses during a given period |
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| Operating budget (mater budget) |
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Definition
| The budget that ties together all of a firm's other budgets; it is the projection of dollar allocations to varous costs and expenses needed to run or operate the business, given projected revenues |
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| A process in which a firm periodically compares its actual revenues, costs and expenses with its budgets |
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| Major investments in either tangible long-term assests such as land, buildings, and equipment or intangible assets such as patents, trademarks, and copyrights |
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| Funds raised through various forms of borrowing that must be repaid |
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| Funds raised from operations within the firm or through the sale of ownership in the firm |
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| Borrowed capital that will be repaid within one year |
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| Borrowed capital that will be repaid over a specific period longer than one year |
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| The practice of buying goods and services now and paying them later |
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| A written contract with a promise to pay a supplier a specific sum of money at a definite time. |
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| A loan backed by something valuable, such as property |
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| a loan thats not backed by any specific assets |
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| A given amount of unsecured short-term funds a bank will lend to a business, provided the funds are readily available |
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| Revoling credit agreement |
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Definition
| A line of credit that is guaranteed by the bank |
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| Commercial finance companies |
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Definition
| Organizations that make short-term loans to borrowers who offer tangible assets as collateral |
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| The process of selling accounts receivable for cash |
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| Unsecured promissory notes of $100000 and up that mature (come due) in 270 days or less |
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| A promissory note that requires the borrower to repay the loan in specified installments |
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| The principle that the greater the risk a lender takes in making a loan, the higher the interest rate required |
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| The terms of agreement in a bond issue |
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| A bond issued with some form of collateral |
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| A bond backed only by the reputation of the issuer; also called a debenture bond |
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| Money that is incested in new or emerging companies that are perceived as having great profit potential |
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Definition
| Raising needed funds through borrowing to increase a firm's rate of return |
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| The rate of return a company must earn in order to meet the demands of its lenders and expectations of its equity holders |
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