Exercice - Vocabulary

A. Substitute appropriate terms for the italicized words or phrases in the sentences below
Status agencies monitored maintain independently
Procedure fee hire rigorous solely

1. Many accounting departments have strict entrance requirements; only the most qualified applicants are allowed to enter these programs. (rigorous)
2. The particular method used to process employee insurance claims may vary from company to company. (procedure)
3. The stock market is closely watched every day. (monitored)
4. Rather than expand into foreign lines, the dress shop manager chose to deal only with domestic fashion designers. (solely)
5. Although the consultant’s charge for services was high, his guidance and advice were well worth the money. (fee)
6. The financial condition of a company is reflected in its financial statements. (status)
7. When the business began to expand, a second bookkeeper was brought in to help keep the books. (maintain)
8. In the United States there are numerous organizations that provide services at the local, state, and national levels. (agencies)

Fill in the blanks below with the most appropriate terms from the list
Parties financial statement reflected standardized allows
Whereas interpretations informed communicates rigorous
An income statement is one example of a financial statement. It reflected financial information about a company over a period of time. A standardized format is used to present the financial information. This allows interested parties to compare one income statement to another in order to make informed financial decisions. But there is still a great deal of risk involved in financial decision making because the information communicates in an income statement is subject to a variety of interpretation.

Kata - kata yang sulit
Fee : upah
Hire : mempekerjakan
Rigorous : ketat
Solely : hanya
Whereas : padahal

An Introduction to Financial Management

Goal of the Firm

1) Profit Maximization? this goal ignores:

a. TIMING of Returns

b. UNCERTAINTY of Returns

2) Shareholder Wealth Maximization? this is the same as:

a) Maximizing Firm Value

b) Maximizing Stock Price

Legal Forms of Business

1) Sole Proprietorship

• A business owned by a single individual.

• Owner maintains title to the firm’s assets.

• Owner has unlimited liability.

2) Partnership

Similar to a sole proprietorship, except that there are two or more owners.

2a) General Partnership

All partners have unlimited liability.

2b) Limited Partnership

• Consists of one or more general partners, who have unlimited liability, and

• One or more limited partners (investors) whose liability is limited to the amount of their investment in the business.

3) Corporation

• A business entity that legally functions separate and apart from its owners.

• Owners’ liability is limited to the amount of their investment in the firm.

• Owners hold common stock certificates, and ownership can be transferred by selling the certificates.