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BUAD 3040 REVIEW 1 - -Corporations is an artificial being...

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What is Finance? ---finance can be defined as the art and science of managing money. Major areas and opportunities in Finance ---Financial services: is the area of finance concerned with the design and delivery of advice and financial products to individuals, business, and government. ---managerial finance: is concerned with the duties of the financial manager in the business firm. Financial managers actively manage the financial affairs of any type of business---financial and nonfinancial, private and public, large and small, profit-seeking and not-for-profit. Legal forms of business organization ---sole proprietorships: is a business owned by one person who operates it for his or her own profit. ---A partnership consists of two or more owners doing business together for profit.
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Unformatted text preview: ---Corporations: is an artificial being created by law. .---other limited liability organizations: the most popular are limited partnerships (LPs), S corporations (S corps), limited liability corporations (LLCs), and limited liability partnerships (LLPs). Using Financial Ratios Types of Ratio Comparisons---cross-sectional analysis: involves the comparison of a different firms’ financial ratios at the same point in time. ---time-series analysis: evaluates performance over time. ---combined analysis: the most informative approach to ratio analysis combines cross-sectional and time-series analyses. Liquidity ratios: Liquidity ratio= (total liquid assets)/(total current debts) Quick (Acid-Test) Ratio: Quick ratio= (current assets – inventory)/(current liabilities)...
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