Understanding Canadian Business - Chapter 17: Mining Financial Management

These flashcards cover key terms and concepts related to financial management in Canadian business as outlined in Chapter 17.

Financial Management

The job of managing a firm’s resources to meet its goals and objectives.

Operating Budget

A budget that ties together all of the firm's other budgets and summarizes the business's proposed financial activities.

Capital Expenditures

Major investments in either tangible long-term assets such as land, buildings, and equipment, or intangible assets such as patents and copyrights.

Trade Credit

The practice of buying goods or services now and paying for them later.

Debt Financing

Funds raised through various forms of borrowing that must be repaid.

Equity Financing

Money raised from operations within the firm or through the sale of ownership in the firm.

Cash Flow Forecast

A short-term forecast predicting cash inflows and outflows in future periods, usually months or quarters.

Promissory Note

A written contract with a promise to pay a supplier a specific sum of money at a definite time.

Venture Capital

Money invested in new or emerging companies perceived as having great profit potential.

Initial Public Offering (IPO)

The first time a corporation offers to sell new stock to the general public.