readings 2 Flashcards
Legal compliance
The extent to which a company conducts its business operations in accordance with applicable regulations, statutes, and laws.
fraud triangle,
The three factors that increase the likelihood of an individual committing fraud, as well as other forms of ethical violations; these factors are pressure, opportunity, and rationalization.
Giving Voice to Values
An approach to values-driven leadership development that helps you learn how to effectively act on your values and ethical principles in the context of your professional responsibilities
Fraud
The act of intentionally deceiving a person or organization or misrepresenting a relationship in order to secure some type of benefit, either financial or nonfinancial.
Triple bottom line (TBL)
A measure that accounts for an organization’s results in terms of its effects on people (social), the planet (environmental), and profits (economic)
Corporate social responsibility (CSR)
The practice in which a business views itself within a broader context, as a member of society with certain implicit social obligations and responsibility for its own effects on environmental and social well-being.
Financial management
The art and science of managing a firm’s money so that it can meet its goals.
The Financial Manager’s Responsibilities and Activities
Financial planning:
Investment (spending money):
Financing (raising money):
Financial planning:
Preparing the financial plan, which projects revenues, expenditures, and financing needs over a given period.
investment (spending money):
Investing the firm’s funds in projects and securities that provide high returns in relation to their risks.
Financing (raising money):
Obtaining funding for the firm’s operations and investments and seeking the best balance between debt (borrowed funds) and equity (funds raised through the sale of ownership in the business).
risk-return tradeoff.
A basic principle in finance which states that the higher the risk, the greater the return that is required.
cash management
Making sure that enough cash is on hand to pay bills as they come due and to meet unexpected expenses
Treasury bill
Short-term debt obligations of one year or less issued by the US government.
Certificates of deposits
Savings products offered by banks and credit unions. You generally agree to keep your money in the CD without taking a withdrawal for a specified length of time. Withdrawing money early means paying a penalty fee to the bank.
