General Areas of Finance
Banks, insurance companies, savings and loans, and credit unions.
Financial Markets and Institutions
An unincorporated business owned by one individual
Proprietorship
Hostile Takeover
The acquisition of a company over the opposition of its management.
A company's attitude and conduct toward its stakeholders (employees, customers, stockholders, and community). Ethical behavior requires fair and honest treatment of all parties
Business Ethics
Investments
determining the values, risks, and returns associated with such financial assets as stocks and bonds
An unincorporated business owned by two or more persons.
Partnership
A potential conflict of interest between outside shareholders (owners) and managers who make decisions about how to operate the firm.
Agency Problem
Deals with the set of rules a firm follows when conducting business; these rules identify who is accountable for major financial decisions.
Corporate Governance
Financial Services
functions provided by organizations that deal with the management of money.
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
Corporation
Firms that operate in two or more countries.
Multinational Corporations
Stakeholders
Those who are associated with a business, including managers, employees, customers, suppliers, creditors, stockholders, and other parties with an interest in the firm's well-being.
Managerial Finance
deals with decisions all firms make concerning their cash flows, both in and out. Important in all types of businesses, whether they are public or private, and whether they deal with financial services or the manufacture of products.
Offers the limited personal liability associated with a corporation; however, the company's income is taxed like that of a partnership.
Limited Liability Company (LLC)
The prices at which the currency of one country can be converted into the currencies of other countries.
Exchange Rate
Proxy Votes
A set of rules drawn up by the founders of the corporation that indicates how the company is to be governed; includes procedures for electing directors, rights of stockholders, and how to change the bylaws when necessary.
Bylaws
A corporation with no more than 100 stockholders that elects to be taxed in the same manner as proprietorships and partnerships, so that business income is only taxed once.
S Corporation
Stockholder Wealth Maximization
The appropriate goal for management decisions; considers the risk and timing associated with expected cash flows to maximize the price of the firm's common stock.
A document filed with the appropriate department of the state in which a business is incorporated that provides information about the company, including its name, address, directors, and amount of capital stock.
Corporate Charter