The goal of financial management is to:
Financial Management Flashcard

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Business
•
11th Grade
•
Easy
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1.
FLASHCARD QUESTION
Front
Back
Maximize value for shareholders.
2.
FLASHCARD QUESTION
Front
A liquid asset is one that:
Back
Can be quickly converted into cash with little risk.
3.
FLASHCARD QUESTION
Front
What is the principle that higher returns are associated with greater risks?
Back
Risk-return trade-off
4.
FLASHCARD QUESTION
Front
Which term describes net income reinvested in the firm?
Back
Retained earnings
5.
FLASHCARD QUESTION
Front
What are funds provided by owners of a company called?
Back
Equity financing
6.
FLASHCARD QUESTION
Front
What measures a firm's ability to meet short-term obligations?
Back
Liquidity ratios
7.
FLASHCARD QUESTION
Front
What is the mix of equity and debt used to finance a firm’s permanent needs?
Back
Capital structure
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