Flashcards
Exam #1 Managerial Finance
Cards in this deck (8)
- 1What is a corporation?A legal entity created by a state, separate and distinct from its owners and managers, having unlimited life, easy transferability of ownership, and limited liability.
- 2What is a money market?The financial market in which funds are borrowed or loaned for short periods (less than one year).
- 3What are Futures Markets?The markets in which participants agree today to buy or sell an asset at some future date.
- 4What is a Mutual Fund?Organizations that pool funds which are collected by investors, to purchase securities such as stocks, bonds, money market instruments and similar assets and thus reduce risks through diversification.
- 5Fixed Assets Turnover RatioThe ratio of sales to net fixed assets. It measures how effectively the firm uses its plant and equipment.
- 6What is an annuity?A contractual financial product sold by financial institutions that is designed to accept and grow funds from an individual and then pay out a stream of payments at a later date. (A series of equal payments at fixed intervals for a specified number of periods.)
- 7What is a zero-coupon bond?A bond that pays no annual interest but is sold at a discount below par, thus compensating investors in the form of capital appreciation. Free of reinvestment risk.
- 8What is a Treasury Bill?It is a short-term debt obligation backed by the U.S. government with a maturity of less than one year and zero risk.
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- Vocabulary covering the first part of Managerial Finance
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- merleschm
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