Business Chapter 16

all the activities concerned with obtaining money and using it effectively

• Investment
• Financial management

• Budgeting
• Accounting

the movement of money into and out of an organization

• Cash flow
• Investment analysis
• Expense tracking
• Revenue generation

money that will be used for one year or less

• Fixed deposits
• Savings account
• Long-term investments
• Short-term financing

the production of goods which is followed by a time lag before the actual sale of those goods

• On-demand manufacturing
• Speculative production

• Bulk production
• Just-in-time production

money that will be used for longer than one year

• Long-term financing

• Short-term investments
• Temporary funds
• Immediate cash flow

a plan for obtaining and using the money needed to implement an organization’s goals and objectives

• Investment Plan
• Financial Report
• Financial plan

• Expense Tracker

a ratio based on the principle that a high-risk decision should generate higher financial returns for a business and more conservative decisions often generate lower returns

• Profit maximization
• Market volatility
• Investment diversification
• Risk-return ratio

a financial statement that projects income, expenditures, or both over a specified future period

• Cash Flow Statement
• Income Statement
• Balance Sheet
• Budget

a financial statement that estimates cash receipts and cash expenditures over a specified period

• Cash budget

• return ratio

• zero base budgeting

• certificate of desposit

a budgeting approach in which every expense in every budget must be justified

• Zero-based budgeting
• Line-item budgeting
• Activity-based budgeting
• Incremental budgeting