Business Terms Test 3 Flashcards
the right to take possession of collateral until a 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 judgements against the company.
Limited Liability Corporation(LLC)
A loan that provides the borrower a maximum amount of money he/she can borrow- the borrower can then access or use 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 state 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. Investors purchase mutual funds because they are less risky than holding any individual stock.
Mutual fund
Net means revenues after costs
Net income
A payment that is owed every month.
Obligation
debt obtained from a number of online companies. Browsers need to disclose much less information about themselves to obtain online credit and online credit companies make credit decisions much more quickly than banks.
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 also called a bounced check
Overdraft
costs that a business incurs that are not part of producing the goods or services it sells.
Overhead
owning an asset without any associated debt.
Own “free and clear”
when two or more individuals own a company. Partners are taxed on the profits of the company and are personally liable for any debts.
Partnership
The amount of money borrowed
Principal
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
Profit per Unit
most projections are for a year. A quarter means three months some businesses make quarterly reports
Quarter
Real Estate is property and the buildings on it. Real estate can be a piece of land or can be a home on that piece of land or it can be a building. Real estate is typically purchased using a mortgage.
Real Estate
debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment.
Secured Debt
