Unit 17 financial Management

finance

A business function that involves money management effectively and efficiently

financial managers

The executives who develop and carry out their firm's financial plan and decide on the most appropriate sources and uses of funds

risk-return trade-off

process of maximizing the wealth of a firm's shareholders by striking the optimal balance between risk and return

financial plan

a document that outlines the funds needed for a certain period of time, along with the sources and intended uses of those funds

Capital Structure

the mix of a firms debt and equity capital

venture capitalists

firms or groups of individuals that invest in new and growing firms in exchange for an ownership share

tender offer

a proposal made by a firm to the target firm's shareholders specifying a price and the form of payment

Leverage Buyout (LBO)

transaction in which public shareholders are bought out and the firm reverts to private status

divestiture

the sale of assets by a firm