3rd test Flashcards
the right to take possession of collateral until debt is repaid.
Lien
a special type of corporation where individual owners or members are taxed on the profits of the company, but the corporation is liable for debts or judgments against the company.
LLC
A loan that provides the borrower a maximum amount of money he/she can borrow- the borrower can then access that line of credit for only as much money as they need at any particular time.
Line of credit
cash or securities that can be immediately turned into cash, which can then repay any loan amount outstanding.
Liquid assets
The state agency that collects taxes.
Louisiana Department of Revenue
How a business communicates to large numbers of customers, motivating them to learn more about the business and its offerings.
Marketing
the date a loan is repaid in full
Maturity
A person who coaches and supports an entrepreneur or a student studying to become an entrepreneur
Mentor
The money a person borrows to buy real estate.
Mortgage
An investment security that includes many different stocks purchased and held together.
Mutual fund
“net” means revenues after cost.
Net income
A payment that is owed every month.
Obligation
Debt obtained from a number of online companies.
Online credit
When a company issues a check or makes a financial commitment for an amount greater than the amount the company has deposited in the bank.
overdraft
cost that business incurs that they are not part of producing the goods or service it sells, but which are required to operate legally and efficiently
Overhead
owning an asset without any associated debt.
Own “Free and Clear”
when two or more individuals own a company.
Partnership
The amount of money borrowed.
Principle
A Latin phrase that in business means a projection of future financial performance.
Pro Forma
The ability to find solutions to difficult or complex issues.
Problem solving
revenues minus cost
Profit
Unit prices minus the cost of goods sold
Profits per unit
Most projections are for a year. A Quarter means three months.
Quarter
Real estate is a property and the buildings on it
Real estate
Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make it’s scheduled debt payment.
Secured debt
