Save
Busy. Please wait.
Log in with Clever
or

show password
Forgot Password?

Don't have an account?  Sign up 
Sign up using Clever
or

Username is available taken
show password

Your email address is only used to allow you to reset your password. See our Privacy Policy and Terms of Service.


Already a StudyStack user? Log In

Reset Password
Enter the associated with your account, and we'll email you a link to reset your password.

Question

What are the functions of financial management?
click to flip
focusNode
Didn't know it?
click below
 
Knew it?
click below
Don't know

Question

What are the sources of capital?
Remaining cards (11)
Know
0:01
Embed Code - If you would like this activity on your web page, copy the script below and paste it into your web page.

  Normal Size     Small Size show me how

Financial Management

Chapter 1

QuestionAnswer
What are the functions of financial management? 1. How a business obtains funds required to operate, how it uses the funds, and how it uses the income it earns. 2. External forces affect the decisions a business makes.
What are the sources of capital? Owners & Creditors.
What is equity capital? This is when owners invest their own capital into a business, and, therefore, the profits earned belong to the owners.
What is debt capital? This is when a business obtains capital from outsiders through borrowing.
What are the forms of business organizations? 1. Sole proprietorship 2. Partnership 3. Corporation
What are the two components of shareholders' equity? 1. Contributed capital 2. Retained earnings
What is contributed capital? the money invested by owners in the form of shares, both common and preferred.
What is retained earnings? the profits made and retained by a company.
What are common shareholders' rights? 1. The right to vote for the members of the board of directors. 2. The right to receive dividends if declared. 3. The right to a share of assets, in case of liquidation.
What are preferred shareholders' rights? 1. The annual dividend is fixed and must be paid in full before the common shareholders receive any dividend. 2. Upon liquidation, the preferred shareholders must receive all of their capital back, before common shareholders receive and capital back.
Preferred shareholders give up which two rights that the common shareholders have? 1. The right to vote (for the board of directors) 2. The right to participate in earnings growth of the company. They only get their fixed dividend - no matter how well the company is doing.
What is the main goal of financial management? It is the maximization of shareholder wealth!!!
Popular Finance sets

 

 



Voices

Use these flashcards to help memorize information. Look at the large card and try to recall what is on the other side. Then click the card to flip it. If you knew the answer, click the green Know box. Otherwise, click the red Don't know box.

When you've placed seven or more cards in the Don't know box, click "retry" to try those cards again.

If you've accidentally put the card in the wrong box, just click on the card to take it out of the box.

You can also use your keyboard to move the cards as follows:

If you are logged in to your account, this website will remember which cards you know and don't know so that they are in the same box the next time you log in.

When you need a break, try one of the other activities listed below the flashcards like Matching, Snowman, or Hungry Bug. Although it may feel like you're playing a game, your brain is still making more connections with the information to help you out.

To see how well you know the information, try the Quiz or Test activity.

Pass complete!
"Know" box contains:
Time elapsed:
Retries:
restart all cards