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The Goals and Functions of Financial Management

Horizontales
Long-term plant and equipment
Multiple ownership
provides a structure for decision making in such areas as risk analysis, pricing theory through supply and demand relationships, comparative return analysis
Financial Capital
is closely related to economics and accounting
those markets dealing with short-term securities
when someone has information that is not available to the public and then uses this information to profit
form of organization represents single-person ownership
Verticales
those markets where securities have a life of more than one year
were created as insurance against borrowers defaulting on their loans
gross domestic product, unemployment, inflation, interest rates, and taxes
are the meeting place for people, corporations, and institutions that either need money or have money to lend or invest
language of finance because it provides financial data through income statements, balance sheets, and the statement of cashflows
The rate at which the general level of prices for goods and services is rising
is unique it is a legal entity unto itself