Business and Finance: Chapter 6

1. The equity required of return of owners in company.
2. organization Business decisions are made at lower levels and not at company headquarters.
6. integration Expansion through increased involvement in different stages of production and distribution.
8. Capital structure financing combination of the low cost of capital and maximum market value.
12. Merger between two or more companies in the same type of business.
15. Offer of variety of products or services.
16. of debt rate of return required by creditors.
17. flows yearly amounts of increased sales or decreased costs.
19. Cost of an alternative that is given when someone makes a decision.
20. construction or purchase of a long-term asset. Examples: Buildings and equipment.
21. expenses have been incurred and can not be recovered.
22. projects Two or more projects that are dependent on one another.

1. Business decisions are made at company headquarters.
3. Present value of cash flow for a project minus initial investment.
4. The agreement to share the business project(s) between two or more companies.
5. calculated by multiplying the proportions of debt and equity by the capital cost for each.
7. Method is used to determine how long it will take for the cash flows of the capital project to equal the original cost.
9. Decrease in value of an item over time and use.
10. of capital Interest value used to evaluate the capital project.
11. intangible assets used by companies.
13. Rate Return discount which the net present value is zero.
14. Where and who business sells.
18. exclusive projects Acceptance of one project does not allow acceptance of others.