All those
activities that are concerned with obtaining money and using it
effectively.
Money to which
buyers are for one year or less and then repaid.
The movement
of money into and out of an organization.
Money that
will be used for longer than one year.
A plan for
obtaining and using the money that is needed to implement an
organization's goals.
A financial
statement that projects income and for expenditures over a
specified future period of time.
A budgeting
approach in which every expense must be justified in every
budget.
Money received
from the sale of shares of ownership in the business.
Money obtained
through loans.
Financing that
is not backed by collateral.
A payment
delay that a supplier grants to its customers.
A written
pledge by a borrower to pay a certain sum of money to a creditor
at a specified future date.
The lowest
rate charged by a bank for a short&-term loan.
A guaranteed
line of credit.
Short&-term
promissory notes issued by large corporations.
A written
order requiring a customer (the drawee) to pay a specified sum
of money to a supplier (the drawer) for goods or services.
A method of
financing where the title to merchandise is given to lenders in
return for short&-term financing.
Amounts that
are owed to a firm by its customers.
A firm that
specializes in buying other firms' accounts receivable.
Stock owned by
individuals or firms who may vote on corporate matters, but
whose claims on profit and assets are subordinate to the claims
of others.
The rights of
current stockholders to purchase any new stock that the
corporation issues before it is sold to the general public.
Stock whose
owners usually do not have voting rights, but whose claims on
dividends and assets precede those of common stock owners.
An assigned
(and often arbitrary) dollar value printed on the face of a
stock certificate.
The dollar
amount over par value that the corporation has to pay an
investor for redeeming
either preferred stock or a corporate bonds.
Preferred
stock on which any unpaid dividends accumulate and must be paid
before any cash dividend is paid to the holders of common stock.
Preferred
stock whose owners share in the corporation's earnings, along
with the owners of common stock.
Preferred
stock that may be exchanged at the stockholder's option for a
specified number of shares of common stock.
The portion of
a business's profits that is not distributed to stockholders.
A
corporation's written pledge that it will repay a specified
amount of money, with interest.
The date on
which the corporation is to repay the borrowed money.
A bond that is
registered in the owner's name by the issuing company.
A bond whose
ownership is not registered by the issuing company.
A legal
document that details all the conditions relating to a bond
issue.
Bonds of a
single issue that mature on different dates.
A sum of money
to which deposits are made each year for the purpose of
redeeming a bond issue.
An independent
firm or individual that acts as the bond owners' representative.
A bond backed
only by the reputation of the issuing corporation.
A corporate
bond that is secured by various assets of the issuing firm.
A bond that
can be exchanged, at the owner's option, for a specified number
of shares of the corporation's common stock.
A promissory note that requires a
borrower to repay a loan in monthly, quarterly, semiannual, or
annual installments.
