Intro to Finance

capital budgeting or capital expenditure (CAPEX) decision Correct Answers decision to invest in tangible or intangible assets financing decision Correct Answers form and amount of financing of a firm's investments equity investors Correct Answers investors in a company who become shareholders by contributing equity financing debt investors Correct Answers when investors lend money to a company and will eventually need to be repaid. Real assets Correct Answers acquired by investments; used to produce goods and services financial assets Correct Answers financial claims to the income generated by the firm's real assets Corporation Correct Answers a business organized as a separate legal entity owned by stockholders limited liability Correct Answers the owners of a corporation are not personally liable for its obligations forms of business organization Correct Answers proprietorship, partnership, corporation, limited partnership, LLC or LLP CFO Correct Answers sets overall financial strategy treasurer Correct Answers responsible for financing, cash management, and relationship with banks and other financial institutions that hold the firms securities. controller Correct Answers responsible for budgeting, accounting, and taxes. Ensures money is used efficiently