mngmt inteo to business (hb)

6. investment. 7. A is a detailed forecast of future cash flows that helps financial managers identify when their firm is likely to experience temporary shortages or surpluses of cash. 8. is spontaneous financing granted by sellers when they deliver goods and services to customers without requiring immediate payment. 9. Define spontaneous financing. 10. A financial arrangement between a firm and a bank in which the bank preapproves credit up to a specified limit, provided that the firm maintains an acceptable credit rating is a 11. Firms can meet long-term financial needs by reinvesting their earnings. The profits that a firm reinvests are called 12. A is a restriction lenders impose on borrowers as a condition of providing long-term debt financing. 13. Define cash equivalents. 14. What are T-bills? 15. The amount of money, that if invested today at a given rate of interest (called the discount rate), would grow to become some future amount in a specified number of time periods is defined as the 16. Describe the Securities Exchange Act of 1933. 17. Describe the Securities Exchange Act of 1934; what did this law create? 18. Give 3 examples of depository institutions. 19. The Securities and Exchange Commission law required that all publicly traded firms with at least shareholders and $10 million in assets file quarterly and annual financial reports with the SEC, and that brokers and dealers register with the SEC. 20. stock is the basic form of ownership in a corporation. 21. Common stock, preferred stock, and bonds are the three basic types of securities corporations issue to raise long-term capital. Briefly describe each. 22. How are preferred stockholders given preferential treatment? 23. What is a registration statement? 24. Why is financial diversification desirable? 25. The first time a corporation goes public and sells stock is called 26. Define stock (or securities) exchange. 27. A Is a statistic that tracks how the prices of a specific set of stocks have changed. 28. Is insider trading legal? Explain your