1. BA 101 Introduction to Business 17. Financial Management and Banking

2. Role of Financial Management Rent and Utilities Plant and Equipment Materials Advertising-Promotions Distribution Wages, Salaries, Training Interest, Dividends, Taxes Sales from Operations Sales from Assets Retained Earnings Trade Credit Bonds Stocks Commercial Loans Management Decides How To Use Funds

3. Operating Budget Revenues Expenses Cash Flows Master Budget Master Budget Financial Control Cost ControlExpenditures Plan for the Future

4. Financing Operations and Growth Length of Term Cost of Capital Debt or Equity

5. Length of Term Short-Term FinancingLong-Term Financing Time Frame More Than One Year Less Than One Year Maintain Liquidity Meet Obligations Acquire Assets Fund Growth

6. Long-Term Loans Leasing Bonds Preferred Stock Common Stock Sale of Assets Retained Earnings Internal Sources Internal Sources Debt Capital Equity Capital External Sources External Sources Long-Term Projects Long-Term Projects Long-Term Financing Long-Term Financing

7. Cost of Capital Company Risk Opportunity Cost Interest Rates Quality Time Prime Rate Discount Rate Discount Rate Leverage Capital Structure Capital Structure

8. CharacteristicDebtEquity MaturitySpecificNonspecific Claim on IncomeFixed CostDiscretionary Cost Claim on AssetsPriorityResidual Influence Over Management LittleVariable Debt versus Equity

9. Open Account Purchases Short-Term Promissory Note Secured or Unsecured Owner Rents Asset To User Obligation of Repayment Plus Interest Trade Credit Commercial Paper LoansLeasesBonds Types of Debt Financing

10. Checking and Savings Credit, Debit, and Smart Cards Financial Services Business Loans On-Line Payments and Electronic Banking

11. The Federal Reserve System Conducting Monetary Policy Stabilizing the Banking System Stabilizing the Economy Clearing Checks

12. Durable Portable Medium of Exchange Medium Measure of Value Measure Store Store Stable Divisible What is Money?