cards 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 (not the members) is liable for debts or judgments 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 together and held together. Investors purchase mutual funds because they are less risky than holding an individual stock
Mutual fund
“net” means revenue after costs
Net income
a payment that is owned every month
Obligation
debt obtained from a number of online companies. Borrowers need to disclose much less information about themselves to obtain online credit, and online credit companies make credit decisions much more quickly than banks. For these reasons, online credit is much more expensive for borrowers than bank loans
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 issues that are not part of producing the goods or services 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. Partners are taxed on the profit of the company, and personally liable for any debts or judgments against the company.
Partnership
the amount of money borrowed
Principles
a Latin phrase (for the snake of form) that is business mans a projection of future financial performance. A pro forma usually takes the form of a projection of futures revenues and cots
Pro Forma
the ability to find solutions to difficult or complex issues. The process of working through the detains of a challenge or crisis – often under pressure – to reach a solution.
Problem solving
revenues minus costs
Profit
unit price minus cost of goods sold
Profits per unit
most projections are for a year. A “quarter” means three months.
Quarter
is property and the buildings on it
Real estate
