Financial Management

The owner’s personal contributions to the business are known as:

• Equity Capital

• Debt Capital

• Retained Earnings

Profits not taken out of the business but are saved for used by the business are:

• Equity Capital

• Debt Capital

• Retained Earnings

Money that others loan to a business is known as:

• Equity Capital

• Debt Captial

• Retained Earnings

This type of stock gives the right to participate in managing the business by voting on basic issues at annual meetings.

• Preferred Stock

• Common Stock

This type of stock gives holder first claim on corporate dividends if the company earns a profit.

• Common Stock

• Preferred Stock

The arbitrary dollar value assigned to shares of stock when they are issued is:

• Book Value

• Market Value

• Par Value

The price at which stock is actually bought and sold.

• Book Value

• Market Value

• Par Value

The value calculated by dividing the corporation’s net worth by the total number of shares of stock outstanding.

• Book Value

• Market Value

• Par Value

Organizations that help businesses raise large sums of capital through sale of stocks and bonds.

• Investment Banks

• Stock Options

• Venture Capital

Rights granted by a corporation that allows current stockholders to buy additional shares when issued at a fixed price for a specific period of time.

• Investment Banks

• Stock Options

• Venture Capital