Capital budgeting the process of planning and managing a firm"s investment in long-term assets. Capital structure the mix of debt and equity maintained by a firm. Working capital management planning and managing the firm"s current assets and liabilities. Sole proprietorship a business owned by a single individual. Partnership a business formed by two or more co-owners. Corporation a business created as a distinct legal entity owned by one or more individuals or entities. The goal of financial management is to maximize the current value per share of existing stock. The agency problem and control of the corporation. Agency problem the possibility of conflicts of interest between the shareholders and management of a firm. Corporate governance rules for corporate organization and conduct. Stakeholder anyone who potentially has a claim on a firm. Money markets financial markets where short-term debt securities are bought and sold. Capital markets financial markets where long-term debt and equity securities are bought and sold.