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finales cuarto sem > ffc > Flashcards

ffc Flashcards

(59 cards)

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1
Q

Define risk in a financial context

A

Probability of economic losses due to unforeseen events or market fluctuations

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2
Q

What is transactional risk?

A

Risk of conducting operations abroad

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3
Q

What does business risk refer to?

A

The risk related to the industry

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4
Q

Define exchange rate risk

A

Where the value of the firm’s operation or investment will be affected by changes in exchange rate

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5
Q

Who is an arbitrageur?

A

Person involved in the process of buying and selling to make transactions less risky

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6
Q

What is a secure loan?

A

A loan that is backed by collateral

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7
Q

What characterizes an insecure loan?

A

A loan without collateral

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8
Q

What are the 5 C’s of credit?

A
  • Character
  • Capacity
  • Collateral
  • Conditions
  • Capital
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9
Q

What is an example of unsecured debt?

A

Trade Credit

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10
Q

Define commercial paper

A

Represents secure promissory notes issued to the public by large corporations

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11
Q

What is a tax shield?

A

Savings based on deductible expenses to reduce taxable income

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12
Q

What is considered short term in finance?

A

Less than one year

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13
Q

List examples of short-term financing methods

A
  • Trade credit
  • Commercial paper
  • Tax shield
  • Certificate of deposit
  • Factoring
  • Pledging
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14
Q

What is considered long term in finance?

A

More than one year

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15
Q

List examples of long-term financing methods

A
  • Bonds
  • Mortgage
  • Shareholders equity
  • Leasing
  • Bank loan
  • Safety stocks
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16
Q

What is the principal objective of promoting growth in finance?

A

To promote growth

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17
Q

Define safety stock

A

The amount of capital saved by owners for emergencies, internal, long term

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18
Q

Sources of unsecured terms include:

A
  • Trade credit
  • Commercial paper
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19
Q

What is a source of secure debt?

A

Certificate of deposit

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20
Q

What technique compares costs and profits?

A

Cost benefit analysis

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21
Q

What does a cash discount of 5/15 net 50 mean?

A

5% discount if paid within 15 days, with a maximum payment term of 50 days

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22
Q

What are Eurodollars?

A

U.S. dollars held by foreign banks or institutions outside of the USA

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23
Q

Define permanent investment

A

Investment that the company hopes to maintain longer than one year

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24
Q

What is financial risk?

Study These Flashcards
A

Additional risk placed on common stockholders due to financing with debt

25
What is net working capital?
Current assets minus current liabilities
26
What is an stock change?
An organization that operates in the securities market for transactions
27
Define crowdfunding
FINTEC managing financing services through the internet, including debt platforms, equity investment, rewards, and donations
28
What are the most important securities?
* Shares * Bonds
29
Define shares
Units of ownership in a company that provide a percentage of the company and its profits
30
What are bonds?
A loan made by an investor to a company, government, or municipality in exchange for interest payments
31
What does ONG stand for?
Organización no gubernamental (nonprofit institution)
32
What is the BID?
Banco Interamericano de desarrollo (Inter-American Development Bank)
33
What is a financing model?
Ensures an adequate and regular source of funding for healthy organization within nonprofit ethics
34
What is a heartfelt connector?
Popular causes related to the environment, international issues, and medical research
35
Define beneficiary builder
Model that includes hospitals and universities
36
What is a member motivator?
Donors motivated by issues integral to their daily lives
37
What is a public provider?
Associations providing services using a Public Service Provider model
38
What is a beneficiary broker?
A nonprofit administering rental assistance voucher programs
39
Why is donor relations important?
Building and maintaining strong relationships with donors is crucial for sustainable funding
40
What is financial sustainability for NGOs?
Achieving lasting influence through diversifying funding sources and accumulating reserves
41
What is the National Infrastructure Fund's objective?
To provide financial help for public and private sector infrastructure
42
What must NGOs adhere to?
Applicable financial regulations and legal requirements
43
What is multilateral development banking?
Organizations like IDB, IFC, WB that help various projects
44
What does the International IBRD do?
Provides financial products to help countries reduce poverty
45
What is AIF's goal?
To address climate impacts in client countries
46
What does IFC stand for?
International Finance Corporation
47
What does MIGA do?
Brings together guarantee products and experts from the World Bank Group
48
What is venture capital?
Funds that invest in companies with high growth potential
49
What is INDESOL?
National Institute for Social Development funding NGOs for community development projects
50
What role do private companies play in NGO funding?
Corporate donations through CSR programs
51
Name some foundations that fund NGOs in Mexico
* Ford Foundation * Kellogg Foundation * Rockefeller Foundation * Open Society Foundations
52
What are state trusts and programs?
Specific supports for social projects led by NGOs in Mexico
53
What are business angels?
Private investors financing new companies in exchange for equity
54
What is development banking?
Providing medium and long-term financing to serve the public interest
55
Name some commercial banks
* BBVA * Banamex * Santander
56
What connects corporations seeking financing with investors?
Investment banking
57
Define common stock
A security that represents ownership in a corporation
58
What are the types of leverage?
* Operational * Financial
59
List classifications of financing
* Long and short * External and internal

finales cuarto sem (3 decks)

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