Financial Management

2. Anyone, other than stock or bond holders, who has a potential claim on the cash flow of the firm.
3. A term used to describe short-term financial management.
4. Form of business organization in which two or more co-owners form a business.
5. Long-lived property owned by a firm that is used by a firm in the production of its income. Tangible fixed assets include real estate, plant, and equipment. Intangible fixed assets include patents, trademarks, and customer recognition.
6. The decision-making process for accepting or rejecting projects or investments.
7. Holder of equity shares in a firm. The terms shareholders and stockholders usually refer to owners of common stock in a corporation.
8. Asset that is in the form of cash or that is expected to be converted into cash in the next 12 months, such as inventory.
9. Ownership interest in a firm.
10. problem A conflict of interest between a principal and an agent or shareholders and financial managers.

1. Form of business organization that is created as a distinct “legal person” composed of one or more actual individuals or legal entities.
2. A business owned by a single individual. Pays no corporate income tax but has unlimited liability for business debts and obligations.
6. The mix of the various debt and equity capital maintained by a firm.