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FINANCIAL MANAGEMENT TERMS AND CONCEPTS

Horizontales
The allocation of money into assets or projects with the expectation of generating returns or profits in the future.
Occurs when expenses exceed revenues, or when the value of an investment falls below its purchase cost.
A general increase in prices and fall in the purchasing value of money
The planning, organizing, directing, and controlling of financial activities such as procurement and utilization of funds. It aims to maximize the value of the firm to its shareholders.
The difference between current assets and current liabilities. It measures a company's short-term liquidity and operational efficiency.
Verticales
A part of financial management that involves deciding how much of the companys profits should be distributed to shareholders as dividends and how much should be retained for growth.
The cost of borrowing money, or the return on investment for lending money. It is usually expressed as a percentage of the principal amount.
The process of determining the present value of a future cash flow. It helps in evaluating investment opportunities by bringing future amounts to todays terms.
Individuals or entities that own shares in a company. They are the owners of the company and have the right to vote on major decisions and receive dividends.
The potential for financial loss or uncertainty about the outcome of a financial decision or investment. It encompasses the possibility that an investment or financial transaction may not yield the expected return or may even result in a loss.