...Definitions for Finance FIN/370 February 24, 2014 Finance Definitions Finance – Is the study of people and business invest and raise capital to fund them. It is the study of how it addresses the following: 1. What long-term investments should the firm undertake?This area of finance is generally referred to as capital budgeting. 0 2. How should the firm raise money to fund these investments?The firm’s funding choices are generally referred to as capital structure decisions. 3. How can the firm best manage its cash flows as they arise in its day-to-day operations?This area of finance is generally referred to as working capital management. The principle of finance is the following: Principle 1: Money Has a Time Value A dollar received today is worth more than a dollar received in the future. Conversely, a dollar received in the future is worth less than a dollar received today. Principle 2: There Is a Risk-Return Tradeoff We won’t take on additional risk unless we expect to be compensated with additional return. Principle 3: Cash Flows Are the Source of Value Cash flow measures the amount of cash that can actually be taken...
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...Finance- The study of how people and business evaluate investments and raise capital to fund them. * Efficient market- a market in which prices correctly reflects all relevant information. * Primary market- is a market in which new, as opposed to previously issued, securities are bought and sold for the first time. * Secondary market- is where all subsequent trading of previously issued securities takes place. * Risk- Return on total investment, the degree of uncertainty of return on an asset. * Security- A negotiable instrument that represents a financial claim. It can take the form of ownership (stocks) or debt agreement. * Stock- Ownership of a corporation indicated by shares, which represent a piece of the corporation’s assets and earnings. * Bond- A long term 10 years or more, promissory note issued by a borrower, promising to pay the owner of the security a predetermined amount of interest each year. * Capital- Refers to the way a firm finances its assets using a combination of debt and equity. * Debt- A measures of the proportion of the firm’s assets that were financed by borrowing or debt financing. * Yield- describes the amount in cash that returns to the owners of a security. * Rate of return- the amount of revenue an investment generates over a given period of time as percentage of the amount of capital invested. Rate of return shows the amount of time it will take to recovers one’s investment. ...
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...Individual Assignment: Defining Financial Terms • Resource: Financial Management: Principles and Applications • Define the following terms and identify their roles in finance: Finance- A branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Basically, finance deals with matters related to money and the markets. Efficient market- When the information that investors need to make investment decisions is widely available, thoroughly analyzed, and regularly used, the result is an efficient market. This is the case with securities traded on the major US stock markets. That means the price of a security is a clear indication of its value at the time it is traded. Primary market- The primary market is the market for new securities issues. In the primary market the security is purchased directly from the issuer. Secondary market- A secondary market is where investors purchase securities or assets from other investors, rather than from issuing companies. The national exchanges - such as the New York Stock Exchange and the NASDAQ are secondary markets. Risk- Risk is defined as the variability of returns from an investment, the greater the variability (in dividend fluctuation or security price, for example), the greater the risk. Security- Security is collateral offered by a debtor to a lender to secure a loan. For instance, the security behind a mortgage loan is the real estate...
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...1. Primary markets: Markets that sell new issues if securities. 2. IPO: First public issue of a financial instrument by a firm. 3. Investment bank: Financial institution that arrange primary market transactions for business. 4. T bills: Short term US government obligations. 5. Money markets: Market that trade debt instruments with maturities of less than one year. 6. Capital markets: More than one year. 7. Liquidity: The ease with which an asset can be converted into cash. 8. Price risk: Asset sale price will be lower than its purchase price. 9. Nominal interest rates: Interests rates observed in financial markets. 10. Real interest rates: Interest rate on a default free security if no inflation is expected. 11. Default risk: Security issuer might miss or be late in payments. 12. Unbiased expectations: Structure of interest rates reflects the market´s expectations of future short term rates. 13. Market segmentation: Individual investors and financial institutions have specific maturity preferences. 14. Bond: Public traded debt. 15. Par value: Face value of a bond, principal. 16. Coupon rate: Interest rate of a bond. 17. Call: Issuer redeeming bond before scheduled maturity date. 18. TIPS: Treasury inflation protected securities. 19. Zero coupon bond: Bond that pays no interest. 20. Tax equivalent yield: Modification to a muni bond yield to compare to a corporate bond. 21. Yield to maturity: Total return on a bond held to maturity. 22. Debentures: Unsecured...
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...University of Phoenix Material Definitions Define the following terms using your text or other resources. Cite all resources consistent with APA guidelines. |Term |Definition |Resource you used | |Time value of money |This term is basically talking about how money|Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial | | |is worth more in the present time than in the |Management (12th ed.). Retrieved from The University of Phoenix eBook | | |future. |Collection database. | |Efficient market |The efficient market term is a concept that |Titman, S., Keown, A. J., & Martin, J. D. (2014). Financial | | |all trading opportunities are fairly priced. |Management (12th ed.). Retrieved from The University of Phoenix eBook | | |Also its the idea that the market cant be |Collection database. | | |beat, and that it is fair. | | |Primary versus secondary |Primary Market: Financial market where new |Titman,...
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...Section I: Goals and Responsibilities Step 1 - Mission Statement of the Credit Function Definition The mission statement is the statement of purpose. What is your department trying to accomplish? The mission is not a statement of your goals. Your goals are put into place to support the mission. The mission statement describes in what ways you are supporting or interacting in the overall company's mission. It defines your role in the unified vision. Illustration A Company with high margins and an aggressive sales growth target may have a mission statement like this: The mission of the Gorman Inc. credit department is to facilitate an annualized 20% growth in top line performance by assisting in the sales process. The credit department's role is to develop strong customer relationships by granting aggressive but appropriate credit limits and terms, easing the establishment of new accounts by processing applications quickly while protecting the margins by managing risk of loss represented by fraud, failure or severe delinquency Developing a Mission Statement Before a mission statement can be adequately defined, a general understanding of the environment or market in which your company operates must be obtained. In developing the mission statement, there needs to be a basic understanding of the following: A) B) C) D) E) F) Nature of the Marketplace Competition Location of your Customers Growth Plans Margins Internal Company Structure Exploring these areas will ensure...
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...country at both a paid and volunteer basis for their operations. I have, in fact, been one such volunteer contributor for the in-game content of one of their long-standing game releases which features regular content updates. This should allow me insight to provide greater detail, or at least know whom to contact and ask relevant questions about operations. 2. Review definitions of operations management from your reference text and at least two other print sources, and apply the definition to three different types of organization, e.g., food service, manufacturing, and office workers. Briefly compare operations in these to your selected organization. From Operations Management written by William Stevenson and Mehram Hojati, operations management is defined as “the management of direct resources that are required to produce and deliver value via the organization’s goods and services”. Meanwhile, our course text has Jay Heizer and Barry Render alter that definition into “the set of activities that creates value in the form of goods and services by transforming inputs into outputs.” Neither definition is exclusive to the other, yet the wording of each allows for slightly different applications of the same root term of operations management. Looking towards a more generalized and accepted version, Investopedia provides a both a...
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...Health is the level of functional or metabolic efficiency of a living being[clarify]. In humans, it is the general condition of a person's mind and body, usually meaning to be free from illness, injury or pain (as in "good health" or "healthy").[1] The World Health Organization (WHO) defined health in its broader sense in 1946 as "a state of complete physical, mental, and social well-being and not merely the absence of disease or infirmity."[2][3] Although this definition has been subject to controversy, in particular as lacking operational value and because of the problem created by use of the word "complete," it remains the most enduring.[4][5] Other definitions have been proposed, among which a recent definition that correlates health and personal satisfaction.[6][7] Classification systems such as the WHO Family of International Classifications, including the International Classification of Functioning, Disability and Health (ICF) and the International Classification of Diseases (ICD), are commonly used to define and measure the components of health. Systematic activities to prevent or cure health problems and promote good health in humans are undertaken by health care providers. Applications with regard to animal health are covered by the veterinary sciences. The term "healthy" is also widely used in the context of many types of non-living organizations and their impacts for the benefit of humans, such as in the sense of healthy communities, healthy cities or healthy environments...
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...country a nation? What is a nation? In this essay, i will attempt to gain an understanding of what a nation is, and why Canada is in fact a nation, not merely because we meet certain criteria, but because we, as Canadians, believe it is so. To define the term “nation” is quite a challenging task. The Student’s Oxford Canadian Dictionary defines a nation as, “a community of people forming a state or inhabiting a territory”. Compared to other resources, this is fairly a simple one. The same dictionary defines a state as “an organized political community under one government” By these definitions, Canada clearly classifies as a nation. Canada is without a doubt, a nation because the country has satisfied the dictionary’s requirement. Still, not all definitions are so clear. One of the most commonly accepted definitions of a nation is one that is ripe with complex and challenging requirements. These definitions often involve a group of people who share a common culture, ethnic origin and language, and they must either possess or be actively seeking an independent government. Even at a quick glance, we can see that Canada does not meet all of these...
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...URI 25 September 2013 Oedipus Tragic Hero Webster’s dictionary defines a hero as a person, who is admired or idealized for courage, outstanding achievements, or noble qualities. Although this definition accurately describes Oedipus’ character, tragic hero is more of an apt description. A tragic hero is defined usually by the following: One, A man of noble stature. Two, A selfless man who is not afraid to come under scrutiny. Three, The hero honorably receives the punishment given to him. From the beginning to end of the play Oedipus The King, by Sophocles, Oedipus truly defines himself as a hero, a tragic hero. Oedipus is first introduced as the sole ruler of Thebes. Kings/Dictators are usually looked down upon due to their brash and selfish behavior, but Oedipus is the opposite. A priest say, “Therefore, O mighty power, we turn to you: find us our safety, find us a remedy, whether by counsel of the gods or of men. A king of wisdom tested in the past can act in a time of troubles, and act well. Noblest of men, restore life to your city! “(Sophocles 2) when Oedipus makes a declaration to save the city of Thebes from the ongoing plague. The priest calls him the “Noblest of men” in marvel, at the fact, a man of such high stature and importance takes the time to address the concerns of his people. The words used to describe Oedipus such as liberator, noblest of men, boldness, and mighty power show that the people of Thebes rely on and look to Oedipus for safety...
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...Definitions A definition is a statement that gives the meaning of a concept. For simple and relatively concrete concepts such as ‘Table’ we can understand them without definitions by simply seeing them. But most concepts are abstract and complex and to understand them definitions are important tool of knowledge. A definition does the following functions: a. It clarifies the boundaries of a concept. b. It clarifies the relationships among concepts. c. It clarifies the referents of the concepts. Vagueness and Ambiguity A term is ‘vague’ means it is hazy obscure and imprecise for example the words love, happiness, rich or poor are vague. We can rarely tell whether they apply to a given situation or not. How rich one has to be in order to be called rich? An ‘ambiguous expression’ is one that can be interpreted as having more than one clearly distinct meaning in a given context for example: words such as proper, light, critical, bank can be used ambiguously. If one were to describe an action as proper, does this mean proper in moral sense or proper in the sense of being socially acceptable? The difference between ambiguity and vagueness is that vague terminology allows for a relatively continuous range of interpretations, where as ambiguous terminology allows for multiple discrete interpretations. A vague expression creates a blur of meaning where as ambiguous expression mixes up otherwise clear meanings. Definitions and their purposes Definition is a group...
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...“By definition a miracle can never happen.” Discuss. The known definition of a miracle is “an extraordinary and welcome event that is not explicable by natural or scientific laws and is therefore attributed to a divine agency.” However, Peter Vardy in The Puzzle of God gave four different definitions provided by many different scholars, including Aquinas and Hume, with Hume believing they are impossible but cannot be disproved compared to Aquinas believing they are completely possible even within the system of natural activity. What a miracle is can be debated forever due to the many different interpretations of who and why they come about, with psychologists such as Freud arguing they are just an illusion and Wiles arguing that miracles do exist but not as a result of God’s will. The real question is whether the laws of nature can ever be broken and to that affect – do miracles define themselves into non-existence? The definition of a miracle provided by Hume is “a transgression of the laws of nature brought about by the volition of a deity.” He believes that miracles are simply an interposition by some invisible agent, but he however goes on to challenge this definition with his theoretical case miracles which argued that the laws of nature we experience are constant and therefore cannot be changed, In response to this, as the laws of nature cannot be defied, (if they could be broken they would not be laws), by Hume’s definition, miracles can never happen, as laws of nature...
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...My Research Map is divided into the following five segments. ← Phase 1: Literature Review – July to September 2010 The literature review will focus on the Supply Chain business segment in a global sense. My objective is to benchmark industries with respect to the data shared between business partners and business to business transactions. The Food industry is not known as the leader in Customer – Vendor data sharing, so my research will first seek to define the leading industry and then define what characteristics separate the leaders. The secondary research will result in the following outputs. • Journal article summaries, with citations, of relevant information • Book chapters or segments that establish an academic foundations for the B to B interactions including relevant history and future expectations • A repository of my findings to share with my cohort 1. Research the current world class state-of-the-art in customer service. a. Define the world class quality reporting (WCQR) and service currently available i. By Industry segment ii. Include Depth of disclosure, delivery timing, iii. Business to Business commitment to achieve WCQR iv. Define WCQR Customer satisfaction and service levels v. Find, interview and evaluate the best companies, as possible ← Phase 2: Primary Data Collection – September to October 2010 Primary research will include Farmland Foods stakeholders and key Customer’s chosen to...
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...Popular Culture Culture is defined as the behaviors and belief characteristics that define a particular social, economical, or ethnical group. While on the other popular culture is considered a working definition in that even though there is technical definition is constantly being redefined and fine tuned. Popular culture encompasses the most immediate and contemporary elements of a social, economical or ethical group. The most common definition of popular culture is a representation of a common ground of cultural activities or commercial products that cut across economic, social and educational barriers. A major trend that many are seeing more and more is the use of social networking sites such as Facebook and Twitter. The sites have allowed people to connect all over the world. Facebook has enabled the people to reconnect with one another after not seeing each other for years or even to find new friends. Twitter has allowed the masses of people to follow their favorite celebrities as they go about their lives. The population not only in America, but around the world is obsessed with celebrities. These social networking sites, especially Twitter, have allowed the people to see their celebrities on a more regular basis rather than just on the news or magazines. The people of the world have also continued their love of reality shows. Whether the shows feature real people or celebrities, the American population is glued to...
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...Outline and evaluate definitions of abnormality The first definition of abnormality is deviation from the social norm. This means that the person is not conforming to the expected and accepted patterns of behaviour in society. There are two types of social norms which can be broken by ‘not normal’ patterns of behaviour, Implicit and Explicit. Implicit rules are those which are implied, for example using cutlery to eat a roast dinner. Whilst there is no law stating that this must be done, it would be deemed unusual by other members of society. The other rule, explicit, refers to stated rules, for example the law. One example of an individual breaking an explicit rule would be committing Murder. There are however several issues with using deviation from social norm to determine abnormality. The first being cultural relativism, meaning social norms vary between cultures. For example in many African-American tribes, hearing the voices of the recently deceased is seen as a blessing. In the west, it is diagnosed as schizophrenia. Further to this, the definition does not allow for eccentric behaviour, which does not necessarily mean a person is mentally ill, ie. A rugby streaker may not be abnormal, but may just seek attention. A final drawback to this approach is that it does not define the difference between a criminal and a person with a mental health issue. A burglar, for example, may simply have a criminal mind but not be abnormal. The second definition of abnormality is the...
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