Corporate Finance
What does the variable n represent in the time value of money formula?
Future Value = Present Value X (1 + r) ^n
n = number of periods
The potential return rises with an increase in risk.
Risk-Return Tradeoff
Party accused/charged of committing an offense
Defendant
Single person owns all of it with unlimited liability, taxed as individual
Sole Proprietorship
To enact policies that promote an ethical balance between the dual mandates of striving for profitability and benefiting society as a whole
Corporate Social Responsibility (CSR)
What financial statement represents the overall financial position of the company?
Balance Sheet
Refers broadly to any marketplace where the trading of securities occurs, including the stock market, bond market, forex market, and derivatives market, among others.
Financial Markets
Party filing the lawsuit
Plaintiff
No required filings with state, formed when 2 or more persons co-own a business, unlimited Liability, partners are taxed, easily transferable
General Partnership
What is an example of a Moral Maxim?
Golden Rule
What financial statement represents whether or not the company is profitable and why?
Income Statement
Part of an economy with the major players being firms, investors, and markets.
Financial Environment
How many circuit courts are in the U.S. Court of Appeals?
13 circuit courts
Must file with state, middle between Proprietorship and Corporation, only members taxed for their pay, not company, members can elect to tax as a corporation
Limited Liability Corporation (LLC)
Which ethical theory focuses on the consequences?
Utilitarianism/Consequentialism
What financial statement represents the overall liquidity of the company and illustrates where cash is going and where it is coming from?
Statement of Cash Flows
The price at which a security is traded
Market Value
How many districts are in the U.S. Court of Appeals for Federal Court?
94 districts
Must be filed with state, separate legal entity from owners/manager, owners have corporate veil before liable, double taxation, ownership easily transferable, Central Management
Corporation
Which two Greek Philosophers taught that pursuing virtues is in our self-interest?
Plato and Aristotle
The process by which a company decides whether or not to invest in major assets or how much to allocate towards those major assets
Capital Budgeting
The market value of a security is generally trading around its __________ value
Intrinsic
Damages exceeding simple compensation awarded to punish the defendant
Punitive Damages
Legal relationship that exists when one person or party(the principal) engaged with an agent to act for him- to make decisions in his place as he would
Law of Agency
What are the three business ethics theories?
Micro-level ethics- individuals level working within or interacting with businesses
Mid-level- policies, practices, and governance structures of organization
Macro-level ethics- how the business interacts with the environment