TEST BANK For Brigham & Houston, Fundamentals of
Financial Management, Concise Edition 10th edition
Explain the following terms and concepts?
Financial Management - ANSWER:Skillful managing of funds involving decisions
about money and cash flows by businesses, governments, and individuals.
Goal of Financial Management - ANSWER:Involves decisions on maximizing profit,
minimizing costs, market share, and current value of a company's stock to ultimately
maximize owner's wealth.
Personal Finance - ANSWER:Management of personal money.
Corporate Finance - ANSWER:Financial aspects of a business or corporation,
including accounting and investments.
Public Finance - ANSWER:Deals with a government's income and expenditure.
International Finance - ANSWER:Involves exchange rates, monetary systems, foreign
direct investment, and other international financial management issues.
Fundamental Analysis - ANSWER:Uses ratios and financial statement data to
determine the intrinsic value of a security.
Technical Analysis - ANSWER:Uses statistical trends from trading activity to
understand market sentiment behind price trends by identifying patterns and trends.
Balance Sheet - ANSWER:Report of a company's financial worth in terms of book
value.
Asset - ANSWER:Resource with economic value owned or controlled for future
benefit.
Liabilities - ANSWER:Include expense arrangements and debt capital a company is
paying off.
Shareholders' Equity - ANSWER:Amount of assets remaining in a business after
settling all liabilities.
Income Statement - ANSWER:Breaks down a company's revenue against expenses to
determine net income profit or loss.
Financial Management, Concise Edition 10th edition
Explain the following terms and concepts?
Financial Management - ANSWER:Skillful managing of funds involving decisions
about money and cash flows by businesses, governments, and individuals.
Goal of Financial Management - ANSWER:Involves decisions on maximizing profit,
minimizing costs, market share, and current value of a company's stock to ultimately
maximize owner's wealth.
Personal Finance - ANSWER:Management of personal money.
Corporate Finance - ANSWER:Financial aspects of a business or corporation,
including accounting and investments.
Public Finance - ANSWER:Deals with a government's income and expenditure.
International Finance - ANSWER:Involves exchange rates, monetary systems, foreign
direct investment, and other international financial management issues.
Fundamental Analysis - ANSWER:Uses ratios and financial statement data to
determine the intrinsic value of a security.
Technical Analysis - ANSWER:Uses statistical trends from trading activity to
understand market sentiment behind price trends by identifying patterns and trends.
Balance Sheet - ANSWER:Report of a company's financial worth in terms of book
value.
Asset - ANSWER:Resource with economic value owned or controlled for future
benefit.
Liabilities - ANSWER:Include expense arrangements and debt capital a company is
paying off.
Shareholders' Equity - ANSWER:Amount of assets remaining in a business after
settling all liabilities.
Income Statement - ANSWER:Breaks down a company's revenue against expenses to
determine net income profit or loss.
