Ch 16 - Mastering Financial Management Test Yourself
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financial management
Determining a firm's financial needs is one of its important functions
equity capital
Funding that comes from the sale of stock
collateral
It is pledged as security for a loan
cash flow
It is the movement of money into and out of a business organization
preferred stock
Must receive dividends before common stockholders
trade credit
Payments are usually made in 30 to 60 days from the invoice date
sinking fund
The deposits are used for redeeming a bond issue
debenture bond
This investment is backed by the reputation of the issuing corporation
line of credit
A loan that is approved before the money is actually needed
promissory note
A method of financing that is legally binding and enforceable and often issued to suppliers
