Financial Management Flashcard

Financial Management Flashcard

Assessment

Flashcard

Business

11th Grade

Easy

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25 questions

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1.

FLASHCARD QUESTION

Front

The goal of financial management is to:

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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