click below
click below
Normal Size Small Size show me how
4.01
Business activities
| Question | Answer |
|---|---|
| Accounting | The process of keeping and interpreting financial records |
| Accounts payable | all monies owed by the business to others |
| Accounts receivable | all monies owed to a firm by its customers |
| Acquisition of funds | finance activity involving making decisions about financing |
| Administration of assets | financing activity involving making decisions about a firms investments |
| Assets(s) | anything of value that a business or individual owns |
| Capital budgeting | a process in which a firm's financial managers determines which projects it should invest in |
| Capital investment decisions | decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders |
| Captal structure | A firm's mix of financing, usually some combination of debt and equity |
| Cash conversion cycle | Ratio that refers to the number of days between a company paying for raw materials and receiving cash from selling the products made from those raw materials. |
| Debt funding | Using money that is lent by a bank or other institution to finance a project |
| Dividend | a sum of money paid to an investor or stockholder as earnings on an investment |
| Equity funding | Using money from investors to finance a project in exchange for shares in the company |
| Finance | in businesses, the function that involves all money and money management matters |
| Financing | funding a business activity or project through debt, equity, or venture capital |
| Return on capital | a measure of how well a business generates cash flow in relation to the capital it has already invested in itself |
| Venture capital | invested money used for new business opportunities |
| Working capital management | management of firms current balance of assets and liabilities; involves accounts payable and receivable, inventory, and cash |