Vocabulary Contract

3. All monies owed by the business to others
5. In business, the function that involves all money and money management matters
6. capital management/Management of a firm’s current balance of assets and liabilities; involves accounts payable and receivable, inventory, and cash
7. The process of keeping and interpreting financial records
10. A sum of money paid to an investor or stockholder as earnings on an investment
12. capital Invested money used for new business opportunities
13. Anything of value that a business or individual owns
15. funding Using money from investors to finance a project in exchange for shares in the company
16. budgeting A process in which a firm’s financial managers determine which projects it should invest in
17. on capital A measure of how well a business generates cash flow in relation to the capital it has already invested in itself

1. Funding a business activity or project through debt, equity, or venture capital
2. funding Using money that is lent by a bank or other institution to finance a project
4. All monies owed to a firm by its customers
7. of funds Finance activity involving making decisions about financing
8. investment decisions Decisions that determine which projects a business will invest in, how the investment(s) will be financed, and whether to pay dividends to shareholders
9. of assets Finance activity involving making decisions about a firm’s investments
11. conversion cycle/Ratio that refers to the number of days between a company paying for raw materials and receiving cash from selling the products made from those raw materials
14. structure A firm’s mix of financing, usually some combination of debt and equity