Business Key Terms Flashcards
(18 cards)
Assets
An item of property owned by a person or company.
Cash Flow
The movement of money in and out of the business
Cost of borrowing
Cost of borrowing is the interest charged on a bank loan.
Credit Arrangement
A credit arrangement is a contract made between a business and a supplier. It outlines when payments must be made.
Credit check
A credit check is when a company looks at the financial information held on a business or an individual to determine whether they are creditworthy.
Crowdfunding
Crowdfunding is raising money from a large number of people who contribute small amounts, usually online.
Dividends
A sum of money paid regularly by a company to its shareholders out of its profits.
Entrepreneur
A calculated risk-taker who sets up a business in return for financial gain.
Founder
A business founder is an individual or group of individuals who create a business.
Guarantor
A person who guarantees a loan or payment.
Investment Returns
The amount of money that is received in return for investing in a business.
Ordinary shares
share of a company entitling its holder to dividends which vary in amount
Overdraft
An agreement with the bank to overspend on an account.
Permanent Capital
Permanent capital is a source of finance that never has to be paid back.
Share Capital
The money raised when a business becomes a public limited company by offering shares in the business in return for capital.
Shareholder
A part owner of a private or public limited company.
Trade Credit
The ability to buy stock now and pay for it at a later date.
Venture Capitalist
A venture capitalist is an individual who invests money in a start-up business
