3.3c Peter & Tools Flashcards
Why is it important to keep personal finances away from finances of the business?
So that your property won’t be seized if anything happens like your in debt and you can’t pay
Why should entrepreneurs take care of their financial record keeping?
So they know what’s going on in the business and do not lose money. They can also keep track on the business this way
What is limited liability?
When the risk is limited to the amount the person have actually invested or promised to invest
What is unlimited liability?
When the risk includes their own personal assets such as their house or car
What is an asset?
Property or belonging
What is a sole trader?
A type of unincorporated business that is owned by just one person
Why would you hire an accountant in your business?
To help out with the business’ profit and take care and control of the money being invested and the profit being made
What is venture capital ?
Money to invest in a business is sourced from indivual, or groups of people,who wish to invest their own money into new businesses.
What is return on investment?
The amount of money that an investor gets back in return for investigating in a business.
What are shareholders?
Investors who are part owners of a company
What is share capital?
Money to invest in a business is raised by the business is raised by the business issuing shares that it then sells to those who wish to invest in a company.
What is credit check?
A check on the financial status of a business or individual to ensure that the business or the individual has a reliable credit history and does not have any existing outstanding debts.
What is security?
When the leader asks the borrower to put an asset, such as house, or a valuable item owned by the business.
What is asset?
Any item of value that a business owns, such as its machinery or premises.
What is guarantor?
A named person who guarantee to pay the repayments on a loan should the person who has taken out the loan not be able to make the payments.
