Week 5 Flashcards Preview

*Financial Management > Week 5 > Flashcards

Flashcards in Week 5 Deck (15):
1

what are your responsibilities as a business owner?

keep track of accounts (receivable, payable)
pay taxes (federal, state, city)
keep liscenses current (DC, business)
insurance
plan a budget and implement
plan for retirement
emergency contingency plan

2

cash

transactions are recorded only when cash (or equivalent) is exchanged

3

accural

transactions are recorded when a business exchange occurs

4

what are your responsibilities as an associate DC?

keep track of income
keep track of expenses not paid by employer
keep liscence current
plan for retirement
plan for new practice
plan and follow a budget

5

deferment

postpone payment for set time period for certain loans
interest is accured put paid by federal government

6

reasons for deferment

military duty
full-time student

7

forbearance

ineligible for deferment
postpone payment for set time
interest is accured and paid by you

8

7 Cs of credit

credit
capacity
capital
collateral
character
conditions
commitment

9

credit

must be good
problems must be explained

10

capacity

business must be able to support its debts and expenses and be profitable

11

capital

money you or your investors are putting in or equity you already have in the business

12

collateral

value of assets that secure the loan

13

character

of borrower and guarantors

14

conditions

economy, industry trends, or anything that will affect your business

15

commitment

your ability and willingness to succeed which involves guarenteeing the debt personally even if the company can't pay it