Understanding Corporate Finance

4. The owners of a corporation, whose ownership, or equity takes the form of a common stock or, less frequently, preferred stock.
11. provides a financial summary of the firm's operating results during a specified time.
14. Income earned through the sale of a firm's goods or services.
16. The chance that actual outcome may differ from those expected.
17. Long term debt instrument used by business and government to raise large sums of money, generally from a diverse group of lenders.
18. A business owned by two or more people and operated for profit.
19. The magnification of risk and return through the use of fixed-cost financing, such as debt and preferred stock.
20. The science and art of managing money.

1. measures the percentage of each sales dollar remaining after the firm has paid for it goods.
2. An entity created by law.
3. standards of conduct or moral judgement that apply to persons engaged in commerce.
5. The firm's chief accountant who is responsible for the firm's accounting activities such as corporate accounting, tax management, financial accounting, and cost accounting.
6. The firm's chief financial manager, who manages the firm's cash, oversees its pension plans and manages key risk.
7. Periodic distributions of cash to the stockholders of a firm.
8. Evaluation of the firm's financial performance over time using financial ratio analysis.
9. Measures the return earned on the common stockholders' investment in the firm.
10. The amount by which the sale price of an asset exceeds the asset's purchase price.
12. In preparation of financial statements, recognizes revenue at the time of sale and recognizes expenses when they are incurred.
13. A legal provision that limits stockholders' liability for a corporation's debt to the amount they initially invested in the firm by purchasing stock.
15. A type of cross-sectional analysis in which the firm's ratio values are compared with those of a key competitor or with a group of competitors that it wishes to emulate.