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6.02
study stack
Question | Answer |
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Accounting | The process of keeping and interpreting financial records. |
Finance | The process of obtaining funds and using them to achieve the goals of the business |
Capital Investment Decisions | Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether or not to pay dividends to shareholders |
Working Capital Management | pay dividends to shareholders. (FI LAP 7) Working Capital Management Management of a firm’s current balance of assets and liabilities; involves accounts payable and receivable, inventory and cash. |
Cash Conversion Cycle of Working Capital Management | Ratio that refers to the number of days between a company’s paying for raw materials and receiving cash from selling the products made from those raw materials |
Return on Capital | A measure of how well a business generates cash flow in relation to the capital it has already invested in itself |