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BE 4.01

business activities

TermDefinition
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 finance activity involving making decisions about a firms investments
assets anything of value that a business or individual owns
capital budgeting a process in which a firms financial managers determine which projects it should invest in
capital investment decisions decisions that determine which projects a business will invest in, how the investments will be financed and whether to pay dividends to shareholders
capital structure a firms mix of financing usually some combination of debt and equality
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 project
dividend s um of money paid to an investor or stockholder as earrings on an investment
equity funding using money from investors to finance a project in exchange for shares in the company
finance in business 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 oh how well a business generates cash flow in relation to the capital it has already
venture capital invested money used for new business opportunities
working capital management management of a firms current balance of assets and liabilities involves accounts payable and receivable inventory and cash
Created by: matthew.j614
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