GB Chapter 16 Financial Management

A written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date.

• Preferred Stock

• Prime Interest Rate

• Promissory Note

• Short-term Financing

All of the activities concerned with obtaining money and using it effectively

• Financial Leverage

• Financial Management

• Line of Credit

• Long-Term Financing

The use of borrowed funds to increase the return on owners' equity

• Financial Leverage

• Financial Management

• Line of Credit

• Long-Term Financing

The type of corporate ownership that has first claim on profits and assets

• Preferred Stock

• Prime Interest Rate

• Promissory Note

• Short-term Financing

The right to vote on major corporate actions belongs to

• Budget

• Cash Flow

• Common Stock

• Convertible Bonds

A loan that is approved before the money is actually needed

• Financial Leverage

• Financial Management

• Line of Credit

• Long-Term Financing

The lowest rate of interest charged by a bank for a short-term loan

• Preferred Stock

• Prime Interest Rate

• Promissory Note

• Short-term Financing

Money that will be used for one year or less

• Preferred Stock

• Prime Interest Rate

• Promissory Note

• Short-term Financing

The movement of money into and out of an organization

• Budget

• Cash Flow

• Common Stock

• Convertible Bonds

Borrowed money that will be used for more than one year

• Financial Leverage

• Financial Management

• Line of Credit

• Long-Term Financing