Intro to Finance Exam 1

Financial Services Correct Answers the area of finance concerned with the design and delivery of advice and financial products to individuals, businesses, and governments managerial finance Correct Answers concerned with the duties of the financial manager working in a business financial managers Correct Answers administer the financial affairs of all types of businesses- private and public, large and small, profit-seeking and not-for-profit sole proprietorship Correct Answers a business owned by one person and operated for his or her own profit partnership Correct Answers a business owned by two or more people and operated for profit corporation Correct Answers an entity created by law; have legal powers of an individual in that it can sue and be sued, make and be party to contracts, and acquire property in its own name decision rule for financial managers Correct Answers only take actions that are expected to maximize shareholder wealth stakeholders Correct Answers groups such as employees, customers, suppliers, creditors, owners, and others who have a direct economic link to the firm marginal cost-benefit analysis Correct Answers the economic principle that states that financial decisions should be made and actions taken only when the added benefits exceed the added costs corporate governance Correct Answers refers to the rules, processes, and laws by which companies are operated, controlled, and regulated