D076 Finance Skills for Managers WGU

D076 Finance Skills for Managers WGU Leave the first rating Terms in this set (101) Save Practice questions for this set Learn1 / 7Study using Learn finding the present value of some future amount Choose an answer 1What is finance?2 What main tasks a financial manager of a firm does in order to achieve the goal of the firm?3Business Finance4Discounting Don't know?

What is finance?the study of how we allocate our assets over time in a risky world. (Future focuses) What is accounting?System of recording, reporting, and summarizing past financial information and transactions.What is Capital?money or wealth used to invest in business or enterprise.The 3 areas of Financecorporate finance, investments, institutions Business FinanceAn area of finance that deals with sources of funding, the capital structure of corporations, the actions that managers take to increase the value of the firm to its owners, and the tools and analysis used to allocate financial resources.Investmentsthe action or process of investing money for profit or material result.Asset PricingThe process of valuing assets.What is the primary aim of personal finances goals?To maximize satisfaction from products purchased and services obtained.UtilityAbility or capacity of a good or service to be useful and give satisfaction to someone.What is the goal of the financial manager?to maximize the wealth of the owners, the stockholders Publicly traded firmsFirms that have issued shares to the public.

Privately held companiesFirms that have not issued shares to the public where the ownership rights are privately held.What main tasks a financial manager of a firm does in order to achieve the goal of the firm?Making investment decisions, making financial decisions, and managing working capital.Research DevelopmentThe business function responsible for improving and developing services and products.Making Financing Decisions for investments If the investments are large, the firm may need to issue new stocks(equity) or new bonds(debt) to raise capital to finance them.Corporate FinanceThe finance function within a business. One of the three main areas of finance.Financial AnalysisEvaluating an organization's financial statements to determine the profitability of the organization, a division within the organization or a specific event or project.Cash ManagementManaging the day-to-day finance operations of a firm.Tax StrategiesMethods used to minimize the amount of taxes a business pays.Financial Policy Implementation Incorporating new finance ideas within a firm.Private equity (PE)A general term that includes angel investors, venture capitalists, and takeover firms.

venture capitalistsIndividuals or companies that invest in new businesses in exchange for partial ownership of those businesses.HarvestGenerating cash or stock from the sales or IPO of companies in the portfolio of investments.commercial banka financial institution that accepts deposits offers checking and savings accounts and other basic financial products.Personal BankerA commercial bank position with the responsibility to find and attract new clients.Financial PlanningProfessional financial planners work with individuals to help them achieve their goals.EstatesEverything that a person owns or controls, especially at death.Willsa legal document that tells how an estate is to be distributed when a person dies What does stock represent? A percentage of ownership of a company including assets and profits Liquiditythe ease with which an asset can be converted into cash Treasury SecuritiesA debt instrument (bond) that is issued by the United States government in order to raise capital.