Exam Ju 2 Flashcards
Trade Credit include 4 types which are :
Open-book credit (without a written agreement)
Promissory Note (written promise drawn up by the customer)
Trade Draft (written promise drawn up by the supplier
Hire purchase ( deposit + regular instalments)
Short term
Bank loans 2 types which are:
Secured loan : backed by collateral which is an asset such as property
Unsecured loan : the bank may protect itself by requiring the borrower to maintain a compensating balance, which is a percentage of the loan kept on deposit at the bank while the loan is outstanding
Long term financing are:
Medium term loans : 1 to 10 years
Long term loans : + 10 years
Leasing
Bonds
Equity capital
Uk secured bonds are called :
Debentures
Short term financing (4 trucs)
Trade Credit (4 types)
Bank loans (2 types)
Commercial Paper
Factoring
Merger def:
A merger is said to take place when two or more companies agree to combine
Merger may take two forms:
Merger through absorption:
an absorption is a combination of two or more companies into an existing company
Merger may take two forms:
Merger through consolidation:
A consolidation is a combination of two or more companies into a new company
3 types of mergers:
Horizontal merger:
A combination of two directs competitirs, with similar products and market
3 types of mergers:
Vertical merger:a combination of two or more companies involved in different stages of production or distribution of the dame product
3 types of mergers:
Conglomerate merger:
A combination of companies engaged in unrelated lines of business activity
Acquisition (def)
An acquisition can be defined as the act of gaining a majority stake in the target company by an acquiring company
Acquisition may take two forms:
Unfriendly acquisition:
A hostile takeover occurs when the acquiring corporation attempts to take over the target corporation without the agreement of the target corporation’s board of directors.
Acquisition may tale two forms:
Friendly acquisition:
A friendly takeover occurs when one corporation acquires another with both board of directors approving the transaction.
Balance sheet
The balance sheet is a snapshot of a company’s assets, liabilities and shareholders’ equity on a specified date.
Income statement
The income statement is a report that shows how much money a company earned over a specific time period.
Benefices non repartis (reserves)
Retained earnings
Reinvestir l’argent dans le business
To plough back the money into the business
Payer au comptant
Up-front
Payer des mensualités
Regular instalments
IPO. Definition
Ipo1
IPO is the process by which Private Limited Companies go public.
An IPO is the first sale of stock by a private company to the public.
Why do company go public ?
Ipo 1
To raise cash
Growth and Expansion
Better rating, so you can get cheaper money
-more liquidity
The Underwriting process
How to get in on an IPO ?
Ipo 2
Underwriting is the process of raising money by either debt or equity
Cooling off period
Ipo 2
Delai de rétractation
Delai de reflexion
