Business Finance Chapter 1 Definition

corporation

an entity created by law. A corporation has the legal powers of an individual in that it can sue and be sued, make and be party to contracts, and acquire property in its own name.

Finance

Defined as the science and art of managing money. At the personal level, finance is concerned with individuals' decisions about how much of their earnings they spend, how much they save, and how they invest their savings. In a business context, finance involves the same types of decisions: how firms raise money from investors, how firms invest money in an attempt to earn a profit, and how they decide whether to reinvest profits in the business or distribute them back to investors.

Financial managers

-administer the financial affairs of all types of businesses—private and public, large and small, profit seeking and not for profit. -involved in developing corporate strategy and improving the firm's competitive position.

Financial services

area of finance concerned with the design and delivery of advice and financial products to individuals, businesses, and governments. career opportunities include the areas of banking, personal financial planning, investments, real estate, and insurance.

sole proprietorship

business owned by one person who operates it for his or her own profit.

Managerial finance

concerned with the duties of the financial manager working in a business. Financial managers administer the financial affairs of all types of businesses—private and public, large and small, profit seeking and not for profit.

partnership

consists of two or more owners doing business together for profit.