Chapter 32 Flashcards
What are software packages for accounting
Excel, peachtree, quick book, money manager and custom software
What is equity
When there is joint venture. lets say we do joint venture with bank. Bank put money as debt to project and banks wants that we also put our money in investment so our interest will also develop. Our money is called equity.
What is debt financing
It is money loan by bank or any other financial institution against security.
What is long term debt
Debt longer than 1 year duration
Does equity an ownership
Yes
What is equity financing
Partner(s) financing their own money into business
Does equity financing have collateral
No. Debt financing have collateral.
What is institutional equity
Investment by investment bank/modarba company/financial institution is called institutional equity
What are 2 types of funds
1- Internal funds
2- External funds
What are internal funds
Personal funds
What are external funds
Funds from bank or from other persons etc
What is collateral
A security pledged for the repayment of loan
Is there should be early profit expectation
No
