Answers Grade A+ 2023
Capital Budgeting - -the process of planning and managing a firms long term investments
-size
-time
-risk
-capital structure - -mixture of firms long term debt and equity the firm uses to finance it's
operations
-working capital - -deals w/ a firms short term assets (inventory) and short term liability (money
owed to suppliers). managing this is a day to day activity that ensures the firm has sufficient
resources to continue operations and avoid costly interruptions
-agency problem - -the possibility of conflict of interest between the owners and management of
a firm
-stake holder - -someone other than stockholder or creditor that potentially has a claim on the
cash flows of the firm
-4 main areas of finance - --corporate fiance
-investments
- financial institutions
-international finance
-CFO - -chief financial manager
top officer of the firm
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