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agency problems	Conflict of interest between the firm’s owners and managers (See page(s) 16)
capital budgeting decision	Decision as to which real assets the firm should acquire (See page(s) 6)
capital structure	A firm’s mix of long-term financing. (See page(s) 8)
chief financial officer	Officer who oversees the treasurer and controller and sets overall financial strategy.
controller	Officer responsible for budgeting, accounting, and auditing. (See page(s) 9)
corporation	Business owned by shareholders who are not personally liable for the business’s liabilities. (See page(s) 3)
financial assets	Claims to the income generated by real assets. Also called securities. (See page(s) 6)
financing decision	Decision as to how to raise the money to pay for investments in real assets. (See page(s) 7)
limited liability	The owners of the corporation are not personally responsible for its obligations. (See page(s) 4)
partnership	Business owned by two or more people who are personally responsible for all its liabilities. (See page(s) 3)
real assets	Assets used to produce goods and services. (See page(s) 6)
sole proprietor	Sole owner of a business that has no partners and no shareholders. The proprietor is personally liable for all the firm’s obligations. (See page(s) 3)
stakeholder	Anyone with a financial interest in the firm. (See page(s) 16)
treasurer	Manager responsible for financing, cash management, and relationships with financial markets and institutions. (See page(s) 9)