Summary: Finance 2.1 (Foundations)

Study material generic cover image
  • This + 400k other summaries
  • A unique study and practice tool
  • Never study anything twice again
  • Get the grades you hope for
  • 100% sure, 100% understanding
PLEASE KNOW!!! There are just 35 flashcards and notes available for this material. This summary might not be complete. Please search similar or other summaries.
Use this summary
Remember faster, study better. Scientifically proven.
Trustpilot Logo

Read the summary and the most important questions on Finance 2.1 (Foundations)

  • Financial Management and the Firm

    This is a preview. There are 15 more flashcards available for chapter 06/09/2016
    Show more cards here

  • Incremental (marginal) cash fow is...

    the difference between the proected cashflow if the project is selected, versus what the will be, if the project is not selected
  • What is it investors want to be compensated for?

    1. For delaying consumption
    2. Taking on risk
  • Agency problems can be avoided by...

    • monitoring (annual reports)
    • compensation schemes (stock options)
    • market mechanisms (takeovers)
  • Besides the 5 principles, what does a business need to posses, also?

    Ethics and trust, in business and personal wise
  • Which three basic issues are addressed bu the stufy of finance?

    • Capital budgeting decision (long-term investment)
    • Capital structure decision (funding)
    • Working capital decision (cash flows)
  • The Chief Financial Officer (CFO) or Vice President of Finance has duties like...

    • Oversee financial planning
    • Oversee strategic planning
    • Control over cash flow
  • The duties of a treasure can be...

    • cash management
    • credit managament
    • capital expenditures
    • raising capital
    • financial planning
    • management of foreign currencies
  • The duties of a controller can be...

    • taxes
    • financial statements
    • cost accounting
    • data processing
  • The legal form of a Sole Proprietorship is...

    • owned by an individual
    • owner maintains title to assets and profits
    • unlimited liability
    • termination accours by owner's choise or death
  • The legal form of a Partnership is

    • owned by two or more individuals
    • general partners have unlimited liability
    • limited (additional) partners are restricted to their investment
    • limited partners have mo management duties, and no name in the firm 
PLEASE KNOW!!! There are just 35 flashcards and notes available for this material. This summary might not be complete. Please search similar or other summaries.

To read further, please click:

Read the full summary
This summary +380.000 other summaries A unique study tool A rehearsal system for this summary Studycoaching with videos
  • Higher grades + faster learning
  • Never study anything twice
  • 100% sure, 100% understanding
Discover Study Smart

Topics related to Summary: Finance 2.1 (Foundations)