MGMT 100 Chapter Notes - Chapter 17: Unsecured Debt, Stock Certificate, Promissory Note
5 Dec 2018
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4 cs of credit: a business" creditworthiness is determined by its character, capacity, capital and conditions. Bond: a corporate certificate indicating that an investor has lent money to a firm or a government. Budget: a financial plan that sets forth management"s expectations, and, on the basis of those expectations, allocates the use of specific resources throughout the firm. Capital budget: budget that highlights a firm"s spending plans for major asset purchases that often require large sums of money. Capital expenditures: major investments in either tangible long-term assets, or intangible assets. Cash budget: budget that estimates a firm"s cash inflows and outflows during a particular period. Cash flow forecast: forecast that predicts cash inflows and outflows in future periods, usually months or quarters. Commercial finance companies: organizations that make short-term loans to borrowers who offer tangible assets as collateral. Commercial paper: unsecured promissory notes of and up that mature (come due) in 270 days or less.
