SOPHIA PRINCIPLES OF FINANCE –
MILESTONE 4
⩥ Assets . Answer: Something or someone of any value; economic
resources that represent the value of ownership that can be converted
into cash.
⩥ Capitol . Answer: Money and wealth; the means to acquire goods and
services, especially in a non-barter system.
⩥ Debtor . Answer: A person or firm that owes money; one in debt or
one who owes a debt.
⩥ Equity . Answer: The residual claim or interest to investors for assets
after all liabilities are paid.
⩥ Expected Return . Answer: Considering the magnitude and likelihood
of exogenous events, the yield that an investor predicts they will earn on
average.
⩥ Finance . Answer: To provide or obtain funding for a transaction or
undertaking; to back; to support.
⩥ Financing . Answer: A transaction that provides funds for a business.
, ⩥ Investment . Answer: A placement of capital in expectation of
deriving income or profit from its use.
⩥ Liability . Answer: An obligation, debt or responsibility owed to
someone.
⩥ Shareholder . Answer: One who owns shares of stock.
⩥ Financial Statement . Answer: A formal record of all relevant
financial information of a business, person, or other entity, presented in
a structured and standardized manner to allow easy understanding.
⩥ Fundamental Analysis . Answer: An analysis of a business with the
goal of financial projections in terms of income statement, financial
statements and health, management and competitive advantages, and
competitors and markets.
⩥ Market Value . Answer: The total value of the company as traded in
the market. Calculated by multiplying the number of shares outstanding
by the price per share.
⩥ Stakeholder . Answer: A person or organization with a legitimate
interest in a given situation, action, or enterprise.
⩥ Valuation . Answer: The process of estimating the market value of a
financial asset or liability.
MILESTONE 4
⩥ Assets . Answer: Something or someone of any value; economic
resources that represent the value of ownership that can be converted
into cash.
⩥ Capitol . Answer: Money and wealth; the means to acquire goods and
services, especially in a non-barter system.
⩥ Debtor . Answer: A person or firm that owes money; one in debt or
one who owes a debt.
⩥ Equity . Answer: The residual claim or interest to investors for assets
after all liabilities are paid.
⩥ Expected Return . Answer: Considering the magnitude and likelihood
of exogenous events, the yield that an investor predicts they will earn on
average.
⩥ Finance . Answer: To provide or obtain funding for a transaction or
undertaking; to back; to support.
⩥ Financing . Answer: A transaction that provides funds for a business.
, ⩥ Investment . Answer: A placement of capital in expectation of
deriving income or profit from its use.
⩥ Liability . Answer: An obligation, debt or responsibility owed to
someone.
⩥ Shareholder . Answer: One who owns shares of stock.
⩥ Financial Statement . Answer: A formal record of all relevant
financial information of a business, person, or other entity, presented in
a structured and standardized manner to allow easy understanding.
⩥ Fundamental Analysis . Answer: An analysis of a business with the
goal of financial projections in terms of income statement, financial
statements and health, management and competitive advantages, and
competitors and markets.
⩥ Market Value . Answer: The total value of the company as traded in
the market. Calculated by multiplying the number of shares outstanding
by the price per share.
⩥ Stakeholder . Answer: A person or organization with a legitimate
interest in a given situation, action, or enterprise.
⩥ Valuation . Answer: The process of estimating the market value of a
financial asset or liability.
