10/30/25, 5:15 PM COB 300-Finance Exam 1 Flashcards | Quizlet
Social Science Economics Finance
COB 300-Finance Exam 1
5.0 (1 review)
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Terms in this set (290)
the system that includes the circulation of money, the granting of a credit, the making
of investments and the provision of banking faculties
Finance
-analyzeses accounting date and the why of it
-how things are allocated
accounting past historical data
1. How much do we need? (capital budgeting)
3 finance questions 2. Where do we get it from/what form? (capital structure)
3. What do we do once we get it? (capital management)
capital budgeting analyzing our investment needs
capitaol structure mix of debt and equity that the company uses to finance its business
capital management making choice of what to choose
focuses on decisions relating to how much and what types of assets to acquire and
Financial Management
how to run the firm so as to maximize its value
Capital Markets relates to where interest rates, along with stock and bond prices are determined
relates to decisions concerning stocks and bonds and include a number of activities:
security analysis
Investments
portfolio theory
market analysis
security analysis finding the proper values of individual securities (stocks and bonds)
portfolio theory deals with the best way to structure portfolios, or "baskets," of stocks and bonds
the issue of whether stock and bond markets at any given time are "too high," "too
market analysis
low," or "about right"
order of company hierarchy chairperson of board, ceo, coo, cfo,
https://quizlet.com/937975284/cob-300-finance-exam-1-flash-cards/ 1/5
, 10/30/25, 5:15 PM COB 300-Finance Exam 1 Flashcards | Quizlet
who is the highest in the company chairperson of board
which two are usually the same chairperson of board and ceo
firms president
chief operating officer
-directs firms operations
senior vp
chief financial officer
-3rd ranking
Sarbanes Oxley Act requires CFO's and CEO's to certify that their firms financial statements are accurate
-proprietorship
-partnership
4 main forms of biz organizations
-corporations
-LLC and LLP
what is majority most biz are proprietorships, but 80% of all business is done by corporation
sole proprietorship is a business owned and managed by a single individual
Easiest to start
Least regulated
sole proprietorship advantages
Single owner keeps all the profits
Taxed once as personal income
Limited to life of owner
Equity capital limited to owner's personal wealth
sole proprietorship disadvantages
Unlimited liability
Difficult to sell ownership interest
an association of two or more persons to carry on as co-owners of a business for
partnership definition
profit
general partnership partnership in which partners share equally in both responsibility and liability
limited partner only a small share of liability
2 or more owners
more capital available
advantage of partnership
relatively easy to start
income taxed once as personal income (no corp. biz tax)
unlimited liability
disadvantage of partnership partnership dissolves when one dies/sells
difficult to transfer ownership
A business organized as a separate legal entity under state corporation law, having
ownership divided into transferable shares of stock.
corporation
-separate legal entity
Limited liability
Unlimited life
corporation advantage Separation of ownership and management
Transfer of ownership is easy
Easier to raise capital
-Separation of ownership and management
corporation disadvantage -Regulation
-C-corp is double taxed
what is a corporation formed by articles of incorporation
owners = ? shareholders (shareholders elect members of board of directors)
https://quizlet.com/937975284/cob-300-finance-exam-1-flash-cards/ 2/5
Social Science Economics Finance
COB 300-Finance Exam 1
5.0 (1 review)
Save
Students also studied
Accounting test #1: true or false que... Final Exam Review- ACA 122 A100 Exam 2 Full Financi
15 terms 26 terms 49 terms 44 terms
MAKENNA_GREENW... Preview ababirisetti4016 Preview SedonaV07 Preview ten
Terms in this set (290)
the system that includes the circulation of money, the granting of a credit, the making
of investments and the provision of banking faculties
Finance
-analyzeses accounting date and the why of it
-how things are allocated
accounting past historical data
1. How much do we need? (capital budgeting)
3 finance questions 2. Where do we get it from/what form? (capital structure)
3. What do we do once we get it? (capital management)
capital budgeting analyzing our investment needs
capitaol structure mix of debt and equity that the company uses to finance its business
capital management making choice of what to choose
focuses on decisions relating to how much and what types of assets to acquire and
Financial Management
how to run the firm so as to maximize its value
Capital Markets relates to where interest rates, along with stock and bond prices are determined
relates to decisions concerning stocks and bonds and include a number of activities:
security analysis
Investments
portfolio theory
market analysis
security analysis finding the proper values of individual securities (stocks and bonds)
portfolio theory deals with the best way to structure portfolios, or "baskets," of stocks and bonds
the issue of whether stock and bond markets at any given time are "too high," "too
market analysis
low," or "about right"
order of company hierarchy chairperson of board, ceo, coo, cfo,
https://quizlet.com/937975284/cob-300-finance-exam-1-flash-cards/ 1/5
, 10/30/25, 5:15 PM COB 300-Finance Exam 1 Flashcards | Quizlet
who is the highest in the company chairperson of board
which two are usually the same chairperson of board and ceo
firms president
chief operating officer
-directs firms operations
senior vp
chief financial officer
-3rd ranking
Sarbanes Oxley Act requires CFO's and CEO's to certify that their firms financial statements are accurate
-proprietorship
-partnership
4 main forms of biz organizations
-corporations
-LLC and LLP
what is majority most biz are proprietorships, but 80% of all business is done by corporation
sole proprietorship is a business owned and managed by a single individual
Easiest to start
Least regulated
sole proprietorship advantages
Single owner keeps all the profits
Taxed once as personal income
Limited to life of owner
Equity capital limited to owner's personal wealth
sole proprietorship disadvantages
Unlimited liability
Difficult to sell ownership interest
an association of two or more persons to carry on as co-owners of a business for
partnership definition
profit
general partnership partnership in which partners share equally in both responsibility and liability
limited partner only a small share of liability
2 or more owners
more capital available
advantage of partnership
relatively easy to start
income taxed once as personal income (no corp. biz tax)
unlimited liability
disadvantage of partnership partnership dissolves when one dies/sells
difficult to transfer ownership
A business organized as a separate legal entity under state corporation law, having
ownership divided into transferable shares of stock.
corporation
-separate legal entity
Limited liability
Unlimited life
corporation advantage Separation of ownership and management
Transfer of ownership is easy
Easier to raise capital
-Separation of ownership and management
corporation disadvantage -Regulation
-C-corp is double taxed
what is a corporation formed by articles of incorporation
owners = ? shareholders (shareholders elect members of board of directors)
https://quizlet.com/937975284/cob-300-finance-exam-1-flash-cards/ 2/5