FM (Finals)

is a term for matters regarding the management, creation, and study of money and investments. It involves the use of credit and debt, securities, and investment to finance current projects using future income flows.

is a decision making process concerned with acquiring and  utilizing funds in a manner that achieves the firm’s desired goals.

Types of Financial Decisions

Answer explanation

Investment Decisions

Financing Decisions

Dividend Decisions

are those which determine how scarce or limited resources in terms of funds of the buisness firms are committed to projects

assert that the mix of debt and equity chosen to finance investments should maximize the value of investments made

is concerned with the determination of quantum of profits to be distributed to the owners, the frequency of such payments and the amounts to be retained by the firm

Legal Forms of Business Organization

Answer explanation

Proprietorship

Partnership

Corporation

A business owned by a single person who has complete control over business decisions.

A legal arrangement in which two or more persons agree to contribute capital or services to the business and divide the profits or losses that may be derived therefrom

Types of partneship:

one in which each partner has unlimited liability for the debts incurred by the business