CTP - Module 1-6|Questions with complete solutions | 100% verified|60 pages

CTP - Module 1-6 Board of directors ANSWER- A group of individuals that are elected as, or elected to act as, representatives of the stockholders to establish corporate management-related policies and to make decisions on major company issues. Such issues include the hiring/firing of executives, dividend policies, options policies, and executive compensation. Every public company must have this. Cash management ANSWER- The subset of treasury management that specifically deals with managing the daily liquidity (available cash) of a company or organization to ensure the company or organization can meet its short-term obligations. Chief financial officer (CFO) ANSWER- The senior manager who is responsible for overseeing the financial activities of an entire company. This includes signing checks, monitoring cash flow, and financial planning. Economies of scale ANSWER- A relationship that occurs when an increase in sales lowers the average cost per unit sold. Capital ANSWER- The more permanent sources of funds used by a company, such as long-term debt, preferred stock, and common equity.