1.

Chief Financial Officer (CFO) – In charge of accounting, finance, credit policy,

decisions regarding asset acquisitions, investor relations, which involves
communication with shareholders

2. Finance – System that includes the circulation of money, granting of credit, the
making of investments, and the provision of banking facilities

3. Board of Directors – Team of people elected by a corporation’s shareholders to

represent the shareholders’ interest and ensure that the company’s management
acts on their behalf

4. Financial Manager – Acts as an intermediary, standing between the firm’s

operation and capital markets, where the firm’s securities are traded

5. Chief Executive Officer (CEO) – the highest-ranking executive in a company

6. Chief Operating Officer – Directs firm’s operations, also designated as a firm’s

president

7. Financial Management – Also called as corporate finance

8. Risk – Refers to the chance an outcome or investment’s actual gains will differ
from an expected outcome

9. Opportunity Cost – Represent the benefits an individual, investor or business

misses out on when choosing one alternative over another

10. Proprietorship – Unincorporated business owned by one individual

11. Common Shares – Shares entitling their holders to dividends that vary in amount
and may even be missed, depending on the fortunes of the company

12. Return – The amount of money you receive from investment

13. Working Capital Management – Business strategy designed to ensure that a

company operates efficiently by monitoring and using its current assets and current
liabilities to the best effect

14. Corporate Raiders – Individuals who target corporations for takeover because
they are undervalued

15. Adam Smith – His theory is about the main purpose of business lies in generating
profits and increasing shareholder wealth

16. Hostile Takeover – The acquisition of a company over the opposition of its
management

17. Sarbanes Oxley Act – Law passed by congress that requires the CEO and CFO to
certify that their firm’s financial statements are accurate
18. Preferred Shares – Stock that entitles the holder to a fixed dividend, whose
payment takes priority over that of common stock dividends

19. Inventory Management – Refers to the process of ordering, storing and using a
company’s inventory

20. Time Value of Money – Is the concept that money available at the present time is
worth more than the identical sum in the future due to its potential earning capacity

21. Market Price – The stock value based on perceived but possibly incorrect
information as seen by the marginal investor

22. Intrinsic Value – An estimate of stock’s true value based on accurate risk and
return data

23. Equilibrium – The situation in which actual market price equals the intrinsic value

24. Partnership – An unincorporated business owned by two or more persons

25. Corporation – A legal entity created by state, separate from its owners having
unlimited life, easy transferability or ownership, and limited liability