Shared Flashcard Set

Details

CPCU 540
Assignment 1
31
Other
Professional
06/03/2008

Additional Other Flashcards

 


 

Cards

Term
Finance
Definition
is the discipline that determines value, evaluates a company's financial status, and makes decisions about money, banking, investments and other financial matters
Term
Corporate Finance
Definition
oversees a corporation's investment and financial decisions
Term
Sole proprietorship
Definition
is a business owend by one person; corporate partnership and corporation
Term
Unlimited Liability
Definition
means the business owner can lose his business and personal assets in payment of business debts
Term
Partnership
Definition
is an unincorporated business owned by two or more people or entities; compare sole proprietorship and corporations; see also general partnership and limited partnership
Term
General partnership
Definition
has all partners share profits and losses, as described in their partnership agreement; compare limited partnership
Term
Partnership agreement
Definition
contains the agreed upon terms of a partnership
Term
Limited partnership
Definition
has one or more general partners who run the business and who bear unlimited liability for business debts and one ore more limited partners who do not participate in running the business and who bear only limited liability for business debts; compare general partnership
Term
Corporation
Definition
is a business that is a legal entity distinct from the people or entities of which it is composed; compare sole proprietorship and partnership
Term
Board of directors
Definition
hires executives and managers to run the corporation
Term
Limited Liability Company (LLC)
Definition
combines the tax advantage of a partnership with the limited liability of a corporation
Term

Professional corporation

Definition
is owned and managed by one or more professionals to provide professional services
Term
Stakeholder
Definition
is an individual or business with a financial interest in the company
Term
Capital budgeting
Definition

plans and manages the firm's long-term investments

Term
Capital structure
Definition
the firm maintains and uses to finance its operations
Term
working capital
Definition
equals current assets minus current liabilities
Term
Financial market
Definition

is a mechanism for trading securities

Term
money market
Definition
trades short term securities
Term
Capital market
Definition
trades long term securities
Term
Security
Definition
is paper or electronic evidence of an equity or debt instrument
Term
Primary market
Definition
is the market in which a corporation sells its securities for the first time; compare secondary market
Term
Bid price
Definition
is the price the dealer is willing to pay for the security; compare asked price
Term
Asked price
Definition
is the price at which the dealer is willing to sell the security; compare bid price
Term
Bid-asked spread
Definition
is the difference between the security's bid price and asked price
Term
Secondary market
Definition
is a market in which a securities owner sells his securities to another buyer; compare primary market
Term
Market depth
Definition
is a market's ability to handle a large number of transactions without a significant effect on price; compare market breadth
Term
Market breadth
Definition
is the precentage of the overall market participating in the market's up and down move; compare market depth
Term
Articles of Incorporation
Definition
supply basic information about the proposed corporation to the state that will incorporate it
Term
By laws
Definition
are a corporation's own rules for conducting its business
Term
Dealer market (over the counter market)
Definition
has the securities owner sell his securities directly to the buyer
Term

Organized exhange (auction market)

Definition
sells securities through brokers and agents, who match sellers with buyers
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