FINANCE MIDTERM - Chapter 1-6 Questions and Answers Distinction Level 2023

The Four Basic Areas of Finance are: - -1. Corporate Finance 2. Investments 3. Financial Markets and Institutions 4. International Finance -What is the focus of corporate finance (3 basic issues)? - -1. What long-term investments should a firm take on? 2. Where will you get the long-term financing to pay for your investment? 3. How will you manage your everyday financial activities such as collecting from customers and paying suppliers? -Capital Budgeting - -The process of planning and managing a firm's long-term investments -Capital Structure - -The mixture of debt and equity maintained by a firm -Working Capital Management - -The process of managing a firms short-term assets and liabilities -Controller's Office - -1. Oversees cash management 2. Credit management 3. Capital expenditures