Financial Management Fundamentals

The process of planning for, allocating, and managing a company's financial resources.

The balance between the potential risks and potential rewards associated with a financial decision.

The need to balance short-term cash flow needs with long-term strategic investments.

Every financial decision involves weighing the potential risks against the potential rewards.

The balance between using debt (leverage) to increase returns and maintaining flexibility for future opportunities.

A document outlining the funds needed for a specific period of time, including sources of funding and projected expenses.

The process of identifying and allocating funds from various sources to meet the company's needs.

Money generated by sales, investments, and selling assets.

Money borrowed from banks, credit cards, and other external lenders.

A plan that outlines the company's goals, objectives, and priorities.

A detailed plan of how the company will spend its money, including income and expenses.

A budget that identifies the resources needed to launch a new company.

A budget that outlines the expected revenue and expenses for a specific period, typically a year.

A budget that outlines expenditures for major capital investments, such as new equipment or buildings.

A budget that identifies the costs needed for a specific project.

The amounts of money owed to the company by its customers.

The amounts of money that the company owes to its suppliers or lenders.

The process of analyzing and adjusting the financial plan to address any deviations from forecasts.

A strategy to protect against cost increases by securing future supplies at fixed prices.

A budgeting method where every department starts from zero each year and justifies every expense item.

The practice of arranging funds by borrowing money from lenders.

The practice of raising capital by selling ownership shares in the company.

A type of financing that is repaid within a year.

A type of financing that is repaid in a period longer than one year.

The lowest interest rate offered on short-term bank loans to preferred borrowers.

The opportunity cost of using available funds for one investment, rather than another.

The technique of increasing the rate of return on an investment by financing it with borrowed funds.

A firm's mix of debt and equity financing.

A common way for suppliers to extend credit to their customers, allowing them to pay later.

Loans that are backed by assets that the lender can claim if the borrower defaults.

Loans that require a good credit rating but do not require collateral.

A minimum amount of money that a borrower must keep on deposit at the bank as a condition of the loan.

An agreement where a bank agrees to lend a business a maximum amount of money, up to a certain limit.

Short-term, unsecured debt issued by companies to raise funds.

An agreement to use an asset in exchange for regular payments, similar to renting.

Debt securities issued by corporations to raise long-term funds.

Private investments in companies that are not publicly traded, often involving venture capital.

A financial institution that buys shares from a company preparing for an IPO and sells them to investors.

A document that provides details about a company's financial position and plans for an IPO.

Duit yang syarikat miliki dan barang yang boleh ditukar kepada duit, contohnya inventori dan akaun yang belum diterima.

Merancang bagaimana syarikat akan membelanjakan duitnya dengan terperinci, termasuk pendapatan dan perbelanjaan.

Pengurusan kewangan ialah proses merancang dan menguruskan duit syarikat untuk kegunaan harian dan masa depan, dengan mengimbangi risiko dengan ganjaran.

Meminjam duit dan membayar balik dengan faedah. Memiliki komitmen tetap untuk membayar balik.

Mendapatkan modal dengan menjual saham syarikat. Pemilik saham tidak diwajibkan untuk membayar balik modal.

Urusan duit masuk (yang belum diterima) dan duit keluar (yang belum dibayar) syarikat.

Mencari duit dari sumber dalaman, seperti jualan, pelaburan, dan jualan aset.

Mencari duit dari sumber luaran, seperti pinjaman, kad kredit, dan jualan saham.

Pemberi hutang mendapat bayaran dahulu jika syarikat bangkrut. Pemegang saham hanya menerima baki selepas hutang dilangsaikan.

Pemegang saham boleh mempengaruhi keputusan syarikat melalui undi, terutamanya pelabur besar. Hutang memberikan sedikit atau tiada pengaruh.

Bayaran faedah hutang boleh ditolak cukai, mengurangkan beban cukai. Dividen ekuiti tidak boleh ditolak cukai.

Hutang tidak menawarkan insentif pekerja seperti opsyen saham, manakala ekuiti boleh.

Pembiayaan jangka pendek dibayar dalam tempoh kurang dari 1 tahun (contoh: bil), sementara jangka panjang lebih dari 1 tahun (contoh: bangunan).

Kadar faedah utama adalah kadar terendah yang ditawarkan oleh bank kepada pelanggan istimewa.

Gabungan hutang dan ekuiti dalam syarikat, menentukan cara membiayai operasi.