BUSINESS (Vet Med as a Business) Flashcards
importance of vet business
-students coming out with more loans
-life skills (lending, borrowing, and investing)
-need for more education
business
-an organization engaged in commercial, industry or professional activities
-practice of making ones’ living
-making money by producing or buying and selling products
purpose of business
-organize some sort of economic production of goods or services
commerce
-exchange of goods and services between businesses or entities
going concern
-company that has resources need to continue operating for at least 12months
-need to have finanical statements each year
goodwill (“blue sky”)
-intangible assests that arise
Ex. company’s brand name, customer relations, customer base, etc.
-can be calculated as the difference between the cost of purchase and the fair market value of all tangible assets
base goodwill on mulitples
Ex. a really good company might have a multiple of 8 and a rural practice not doing the best might have a multiple of 2
agent
-person or party that acts on behalf of another person or party
creditor
-typically a finanical instituion (bank) that lends money or extends credit to another party
debtor
-person on other side of transaction who now owes the creditor money
revenue
-total amount of money that a business recieves for selling its goods and service
income (‘bottom line’)
-net profit
-what is left after paying all expenses and taxes
assest
-a resource (tangible or intangible) owned or controlled by an entity and has future economic value
Ex. can generate income
liability
-obligation to pay for a past transaction
Ex. loan from the bank
liquidation
-process in law when a company that is closing sells all its assests and distributes each proceeds to claimants (creditors and shareholders)
