test 1 Flashcards
(30 cards)
money owned by a company to a supplier
Accounts Payable
money owed by a customer to a company
Accounts receivable
individuals that make small investments in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on the investment. They are typically friends and family who know the business owner and want to see them succeed
Angel Investors
something of value. Anything owned.
Assets
debt from a bank. Banks require much more information from potential borrowers, and take more time to make a lending decision based on a great deal of analysis. Therefore, bank loans are less expensive than online lines of credit
Bank Loan
a loan. A bond us a security that investors buy and sell, that represents a legal obligation from the company issuing the bond that they will repay the funds they receive when the issue the bond.
Bond
a determination of how many unit’s areas needed to sell in order to pay for all fixed costs
Breakeven Analysis
a company that provided individuals and companies with access to financial markets
Brokerage
proper business behavior beyond complying with legal requirements
Business ethics
funds contributed by investors to a business
Capital (or Equity)
expenditures on equipment the business will use for many years.
Capital expenditures
total revenues minus total cost minus one-time expenditures on equipment that will be used for many years.
Cash flow
cash, publicity traded stocks, government bonds, or corporate bonds that can be quickly turned into cash.
Cash instruments
equipment, inventory or other goods that are pledged to the bank in the case the company cannot make a loan payment.
Collateral
the ability to interact in a friendly and effective way with unfamiliar people
Comfort Engaging with Strangers
money earned when something is sold.
Commission
a promise to keep information you learn secret. This promise is often formalized by signing a Non-Disclosure Agreement (or NDA).
Confidentiality
a situation in which an individual might take an action to his/her advantage that would be to the disadvantage of a person to company that believes this individual is serving them.
Conflict of interest
unit price minus cost of goods sold
Contribution Margin
actions entrepreneurs and companies take that go beyond their financial self-interest.
Corporate social responsibility
a corporation is a person in the eyes of the law. The corporation is taxed for profits and is liable for any debts or judgments. Corporations are owned by shareholders
Corporation
costs that make up one unit of what you sell. These can be labor costs as well as material costs.
Cost of goods sold
a loss that an insurance company will reimburse a policyholder for in the event of a claim.
Covered loss
funds lent to a business with an agreement that the business will repay the lender with interest.
Credit (or Debt)
