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What is the definition of stocks? - (answers)Certificates representing ownership in a company.
How is preferred stock sometimes described? - (answers)Hybrid Security
What do investors seek from bonds? - (answers)Steady and predictable income
What are municipal bonds used for? - (answers)Funding public infrastructure projects
What is the main purpose of pension funds? - (answers)To ensure growth and sustainability of
retirement savings
Three types of finance - (answers)Personal, public, and business
Personal Finance - (answers)Managing individual or household finance activities (e.g.,
budgeting, investing)
Public Finance - (answers)Government financial management, including taxation and budgeting
Business Finance - (answers)Managing company finances, including investment decisions, risk
management, and raising capital
Three Roles of Business Finance - (answers)1. Using financial ratios to manage the business
2. Applying skills with time value of money to determine which projects to invest in
3. Controlling the risk associated with projects by computing the cost of capital to determine how
to fund the chosen projects
,What is business finance? - (answers)The use of financial measures to help management make
decisions
What does capital budgeting in business finance involve? - (answers)Evaluating potential
investment projects
What is the role of financial ratios in business finance? - (answers)To analyze and interpret
business performance
What is another term for business finance? - (answers)Corporate finance
Which is a characteristic of business finance? - (answers)Strategic future planning
One of three roles of business finance that involves computing financial measures: _______
analysis - (answers)Ratio Analysis
While accounting is focused on historical data, finance is focused on _____________ financial
outcomes and projections. - (answers)Future
The process of recording, summarizing, and reporting financial transactions to provide
transparency and compliance in financial statements: - (answers)Accounting
The area of finance that helps manage individual and household financial activities: -
(answers)Personal
One of the three roles of business finance: controlling ___________ associated with projects by
determining how to fund them. - (answers)Risk
One of the 3 roles of business finance that involves applying skills with time value of money to
determine which projects to invest in: __________ budgeting - (answers)Capital
, The management of assets, liabilities, and financial planning to optimize the use of resources for
business growth and stability. - (answers)Finance
The area of finance that focuses on the management of a company's financial activities and
strategies. - (answers)Business Finance
The area of finance that involves managing a governments revenues, expenditures, and debt. -
(answers)Public Financing
Central _________ issue currency and set monetary policy in the United States. -
(answers)Banks
Most common type of stock - (answers)Common stock
Common stock - (answers)A type of security that represents ownership in a corporation, granting
shareholders voting rights and a claim on a portion of the company's profits through dividends.
preferred stock - (answers)A class of ownership in a corporation that has a higher claim on assets
and earnings than common stock, typically without voting rights but with fixed dividends.
What is the primary difference between common stock and preferred stock? - (answers)What is a
potential disadvantage of public equity raising?
An asset that can be quickly and easily converted in to cash without significantly affecting its
market price: - (answers)Liquid
Market capitalization - (answers)Total market value of a company's outstanding shares of stock,
calculated by multiplying the current stock price by the total number of outstanding shares
A portion of a company's earnings distributed to shareholders, usually in the form of cash or
additional stock: - (answers)Dividends