Deck 2 Flashcards
business
an activity that brings income through selling goods or services
employee
a person working for another person or organization for pay
employer
the person or organization providing the jobs
corporation
an organization formed by a group of people acting together,
a corporation can be a company or a business
How to earn
money?
A. Working for someone
B. Working for yourself
C. Making your Money work for you
profit
the money made from running a business as a result of having more revenues than expenses
Profit = Revenues – Expenses
loss
the opposite of profit; the result of having more expenses than revenues
self-employed
a person who earns a living by working for himself or herself
revenue
the money made from selling goods or services
interest
the payment for the use of money
Interest = Principal x Interest rate x Term
expense
the money spent for running the business
deposit
putting money in a bank
principal
the original amount of money invested
term
a period of time for an investment or a loan
interest
rate
the percentage rate paid for the use of money
depositor
a person or an organization that puts money in the bank
borrower
a person or an organization that uses someone else’s money for a period of time
credit
an arrangement that allows a borrower to get something valuable and pay the lender in the future
lender
a person or an organization that lends money in order to make a profit
credit card
a card that allows a borrower to buy goods and services on credit.
have to pay in full when the bill comes; otherwise, late fee and/or interest would be charged
