Introduction to Finance and Financial Management

A set of fill-in-the-blank flashcards covering key concepts from the lecture on finance and financial management.

Finance is the science and art of managing __.

money

According to Gitman and Zutter (2012), finance involves how players in the financial system acquire, spend, manage, and make __ decisions.

sound financial

Finance is a process that includes raising resources and __ them effectively and efficiently to achieve the firm’s goals.

allocating

__ is generally accepted as a means of paying for goods and services and settling debts.

Money

Financial management deals with decisions that are supposed to maximize the value of __ wealth.

shareholders’

The primary goal of financial management is to maximize the __ of the shareholders.

wealth

An investor buys stocks because they want something in __.

return

Financial management includes planning, organizing, controlling, and __ the firm’s funds.

directing

__ is the act of estimating revenue and expenses over a period of time.

Budgeting

The three broad Types of Finance are Public Finance, Corporate Finance, and __ Finance.

Personal

Public finance focuses on collecting tax revenue and spending that money on national __ and programs.

services

Corporate finance involves managing a company’s funding and its profit and loss (__) statement.

P&L

Personal finance is the management of one’s income, expenses, investments, and __.

obligations

A business owned by one person and operated for his or her own profit is called a .

sole proprietorship

A business owned by two or more people and operated for profit is a __.

partnership

An entity created by law and owned by shareholders is known as a __.

corporation

You can become a shareholder of a corporation by .

buying stocks

In the Philippines, publicly listed stocks are traded on the __.

Philippine Stock Exchange

Privately owned corporations are often held by family members whose stocks may not be offered to outsiders without the __ of the family.

consent

Finance is both a and an of managing money.

science; art

Corporate finance professionals include accountants, financial analysts, managers, and executives such as the __ (CFO).

Chief Financial Officer