Special topics L 3&4

43問 • 1年前

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are short-term, operational financial choices that companies make to effectively manage their capital structure, liquidity, and risk, while pursuing specific business objectives.

tactical financing decisions

the process through which a privately held company offers its shares to the public for the first time by listing on a stock exchange. This marks the company's transition from being privately owned to publicly traded. It is defined as the process through which private firms issue new stock to the public, allowing them to raise capital for growth and expansion

initial public offering

It is the process through which an investment bank (the underwriter) acts as a broker between the issuing company and the investing public to help the issuing company sell its initial set of shares.

underwriting

Under such an agreement, the underwriter purchases the whole offer and resells the shares to the investing public.

firm commitment

the underwriter does not guarantee the amount that they will raise for the issuing company. It only sells the securities on behalf of the company.

best efforts agreement

Unless all of the offered shares can be sold, the offering is canceled.

all or none agreement

refers to the strategic process of altering a company's capital structure, which encompasses the mix of debt and equity financing used to fund its operations and growth.

capital restructure

is a corporate operation that involves changing the mixture of debt and equity in a company’s capital structure.

capital restructuring

the process of re-organizing the whole debt capital of the company. It is typically used to avoid the risk of default on existing debts, while providing a less expensive alternative to bankruptcy

debt restructuring

the process of reorganizing the equity capital. It includes reshuffling of the shareholders capital and the reserves in the balance sheet. Since equity restructuring involves peoples ownership of companies, it is a legal process and is highly regulated.

equity restructuring

This helps in reducing the liability of the company to its shareholders resulting in a capital reduction by returning the share capital.

repurchasing the shares

This allows the change of equity capital into to redeemable preference shares or loans.

change of share nature

defined as a contractual arrangement where one party, the lessor, provides the right to use an asset to another party, the lessee, for a specified period in exchange for periodic payments. This arrangement allows the lessee to utilize the asset without acquiring ownership, emphasizing the use rather than possession of the asset

leasing

refers to a contract where one party grants a right to use a property or land to another party in return for consideration and for a specific period of time. It is an implied or written agreement specifying the conditions under which a lessor accepts to let out a property to be used by a lessee.

lease

defined as a contractual arrangement where a lessor provides a lessee the right to use movable or immovable assets for a specified period in exchange for periodic payments. This arrangement allows businesses to utilize assets without the need for outright ownership, thus preserving capital for other investments.

leasing financing

The party who owns the leased premises or property

lessor

the party accepting the leased property

lessee

is a financial product, in which a leasing company gives operating control of an asset to a business for an agreed period, and typically at the end of the contract, the lessee will become the owner of the asset at the end of the lease and both parties share some of the economic risks and rewards for a period of time.

finance lease

It is a lease that transfers substantially all the risks and rewards incident to ownership of an asset. Title may or may not eventually be transferred.

finance lease

a contract that allows for an asset’s use but does not convey ownership rights of the asset. These leases allow businesses to use the asset without incurring the high expenses involved in purchasing it. It is the popular concept in accounting for lease.

operating lease

a tax – advantaged lease arrangement in which a lessor borrows funds to acquire an asset that is then leased to a lessee.

leverage lease

an arrangement in which the company that sells an asset can lease back that same asset from the purchases.

sale-leaseback

a contractual agreement under which the lessor uses the existing asset or purchases it directly to lease it to the lessor.

direct lease

is a multifaceted concept that encompasses uncertainty and the potential for adverse outcomes across various disciplines. It is defined as the obligation to bear losses resulting from unforeseen events, which can arise in contexts such as decision-making, contractual agreements, and health-related scenarios.

risk

the process of identifying, assessing and controlling threat to an organization’s capital, earnings and operations.

risk management

a chart where documents all the risk identification information of project.

risk register

Define the tools and approaches that will be used to perform risk management activities such as risk assessment, risk analysis and risk mitigation strategies.

methodology

It’s a chart that allows to identify risk categories and the hierarchical structure of project risks.

risk breakdown structure

allows to analyze the likelihood and the impact of project risks and prioritize.

risk assessment matrix

a project management document that explains the risk mitigation strategies that will be employed to manage the project risks.

risk response plan

A section where identify the funds required to perform risk management activities.

budget

A section to define the schedule for the risk management activities.

timing

a qualitative problem – solving approach that uses various tools of assessment to work out and rank risks for the purposes of assessing and resolving.

risk analysis

involves identifying threats (or opportunities), how likely they are to happen and the potential impacts. The results are typically shown using a probability/ impact ranking matrix. This type of analysis will also categorize risks either by source or effect. It is the process of evaluating and rating an identified risk based on its severity and the likelihood of its consequences. The goal of qualitative risk analysis is to come up with a short list of risks that need to be prioritized above others.

qualitative risk analysis

It is a statistical technique to understanding financial uncertainty or risk in a project or business venture. It uses numerical values and complex data to determine the probability of a specific event and the potential impact that event could have on the organization.

quantitative risk analysis

It is a risk analysis performed with a focus on numerical values of the risk present. The quantitative risk analysis allows you to determine the potential risk of a project. This can help to decide if a project is worth pursuing.

quantitative assessment

is a crucial step in the project risk management process. It involves developing strategies to address identified risks and reduce their impact on project objectives. It can help ensure project success and minimize the likelihood of negative outcomes.

risk response planning

involves taking action to eliminate a risk entirely. This strategy is typically used when the risk is deemed too high and the potential impact is too great.

risk avoidance

involves transferring the risk to another party, such as an insurance company or subcontractor. This strategy is typically used when the cost of addressing the risk is too high or when another party is better equipped to manage the risk.

risk transfer

involves taking action to reduce the impact of a risk. This strategy is typically used when the risk cannot be entirely eliminated or transferred.

risk mitigation

involves acknowledging the risk and accepting its potential impact. This strategy is typically used when the risk is low or when the potential impact is deemed acceptable.

risk acceptance

is a crucial process in project management that involves identifying, analyzing and responding to potential threat or opportunities that may affect the project objectives, scopes, schedule, budget or quality.

risk monitoring and control

refers to the process of continuously identifying risks and establishing best methods of dealing with those risks.

risk monitoring and control

Lesson 2

mjay rabena · 33問 · 1年前

Lesson 2