Financial Management Midterm Reviewer

A corporation organized by the government to promote public welfare.

A corporation organized by individuals for profit.

A corporation with stock divided into shares, distributed to shareholders.

Financial decisions on funds allocation to operating units.

Maximizing shareholder wealth ethically, with CSR.

The ultimate goal of a corporation, achieved ethically.

Maintaining ethical practices, avoiding harm to society.

Methods that prioritize short-term gain over ethical practices.

The ultimate goal of a corporation, aiming to increase the value of a company's stock for shareholders, often tied to capital gains.

A method of increasing the value of a company's stock, which leads to capital gains for shareholders.

A short-term debt security issued by the government, with a maturity of a year or less.

A market where long-term financing through debt and equity securities occurs.

A market for tangible assets like real estate, equipment, and inventory.

A market where assets are sold and delivered immediately.

A market for contracts to buy or sell assets at a future date at a predetermined price.

A contract whose value is based on the price of an underlying asset, such as stocks or commodities. An example is an option contract.

A type of mutual fund where investors pool their money to invest in a diversified portfolio of securities.

The central bank of the Philippines, overseeing unit investment trust funds.

Retirement savings plans, often employer-sponsored or employee-contributed.

Market for issuing new stocks or shares to investors.

Market for trading existing stocks or shares between investors.

Transfer of securities (stocks/bonds) directly to investors.

Transfer of securities through intermediaries (e.g., brokers).

Describes how well stock prices reflect available information.

A method where a financial institution helps a company issue securities to investors, acting as a mediator.

The price of a stock currently traded in the market.

The true value of a stock, determined by willing buyer and seller.

A method to estimate intrinsic value based on dividends' present value.

The buying and selling of corporate stock by investors.

Comparing financial statement items over multiple periods.

A measure of a company's short-term liquidity, showing ability to pay short-term debt.

Another name for the Current Ratio, representing short-term assets compared to liabilities.

The difference between a company's total current assets and total current liabilities, representing the company's potential cash reserves. It shows if the company has enough readily available assets to pay off its immediate debt.

Financial ratios used to assess a company's ability to meet its short-term obligations.

A liquidity ratio comparing current assets to current liabilities. Indicates a company's ability to pay short-term debts.

A liquidity ratio; similar to the current ratio, but excludes inventory from current assets, as inventory may not be easily converted to cash.

Shows the proportion of a company's assets funded by working capital.

Ratios that show a company's ability to cover its long-term debt obligations.

Indicates the percentage of a company's total assets funded by debt.

Indicates the proportion of a company's total assets funded by shareholders' equity.

A ratio comparing a company's debt financing to its equity financing.

Shows how many times earnings can cover interest payments.

Measures how many times cash flow covers interest payments.

Number of times inventory is sold and replaced.

Efficiency of managing assets to generate revenue.

Sales generated per peso of assets employed.

Frequency of paying suppliers.

Frequency of collecting from customers.