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Terms Definitions 1. Financial capital 2. Trading securities between traders 3. Creation of a separate legal entity for business 4. Increasing prices 5. Specifies the

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Terms Definitions 1. Financial capital 2. Trading securities between traders 3. Creation of a separate legal entity for business 4. Increasing prices 5. Specifies the rights and limitations of an entity 6. Achievement of highest possible value for the firm 7. Stock, bond and capital budgeting decisions 8. Organization with two or more owners 9. Inventory and credit management 10.Changes in the Capital Structure of an organization 11.Demands accuracy in financial reporting 12.Real capital 13.Slowing down of price increases 14.Policy to promote the concept of financial stability 15. Most flexible business structure for owners 16.New issues of securities 17.Similar to a partnership, taxed once as normal income with organizational benefits of a corporation 18.Short term securities one year or less 19.Securities with a life more than one year 20. Single person ownership

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