Business Finance Quiz 1 Reviewer

A comprehensive set of vocabulary flashcards covering corporate organization roles, financial manager functions, and financial institutions as described in the lecture notes.

Business Finance

The science of managing money, specifically the efficient and effective allocation, acquisition, and utilization of funds to help businesses achieve their financial goals.

Financing Decisions

A function of a financial manager that determines where the company will get funds, such as through owner's investment, bank loans, bonds, or issuing shares.

Investing Decisions

Decisions regarding where company funds will be invested, often involving long-term assets like land, buildings, and equipment using Capital Budgeting Analysis.

Operating Decisions

Decisions that deal with daily business operations and the management of working capital, including cash, accounts receivable, inventory, and accounts payable.

Dividend Policy

The decision regarding how much profit will be distributed to shareholders versus how much will be retained for business growth.

Board of Directors (BOD)

The highest policy-making body of a corporation that represents shareholders and ensures the company serves stakeholders' interests.

President

The individual who oversees daily business operations, implements company policies, supervises Vice Presidents, and leads the organization.

VP for Marketing

The executive responsible for formulating marketing strategies, directing sales, conducting market and competitor analysis, and promoting products.

VP for Operations

The executive who ensures production meets customer demand, identifies reliable suppliers, oversees production processes, and maintains product quality.

VP for Administration

The executive responsible for recruiting and hiring employees, overseeing Human Resources, managing office operations, and maintaining company records.

Treasurer

A role under the VP for Finance responsible for cash management, investor relations, credit and collection, investments, insurance, employee benefits, and borrowing funds.

Controller

A role under the VP for Finance responsible for financial reporting, accounting records, internal controls, budget preparation, and consulting management.

Stock Exchange

A marketplace for buying and selling shares, trading both Ordinary Shares and Preference Shares.

Stock Brokerage Firms

Firms that assist investors in buying and selling stocks and execute stock market transactions.

Insurance Companies

Financial institutions that provide protection against financial risks and offer insurance policies.

Investment Companies / Mutual Funds

Entities managed by professional fund managers that pool investors' money to invest in various financial instruments.

Working Capital

Funds used in the daily operations of the business, encompassing current assets and current liabilities.

Capital Budgeting

The process of evaluating long-term investment projects to determine whether an investment is profitable.

Capital Structure

The specific combination of debt and equity used to finance a company's assets.