Fortune

Definition

Fortune is a measure of wealth or success, often used in the context of corporate finance to describe a company's profitability and market value. It can also refer to the rankings published by Fortune magazine, such as the Fortune 500 list.

5 Must Know Facts For Your Next Test

1. The Fortune 500 list ranks the top 500 U.S. companies by total revenue for their respective fiscal years.
2. Inclusion in the Fortune 500 list is often seen as a benchmark of corporate success and stability.
3. Corporate governance practices are crucial for maintaining a company's fortune and ensuring long-term profitability.
4. The board of directors plays a significant role in governing a company's fortunes by making strategic decisions and overseeing management.
5. Shareholder value and company fortune are closely linked; effective governance can enhance both.

Review Questions

• What criteria does the Fortune 500 list use to rank companies?
• How does the board of directors influence a company's fortune?
• Why is corporate governance important for maintaining a company's fortune?

Related terms

Market Capitalization: A measure of a company's total market value, calculated by multiplying its share price by its outstanding shares

Shareholder Value: The financial worth owners receive from owning shares in a company, influenced by dividends and stock price appreciation

Corporate Governance: The system of rules, practices, and processes by which a company is directed and controlled