deck3 Flashcards
- The right to take possession of collateral until a dent 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 judgements against the company.
- Limited Liability Corporation (LLC)
A loan that provides the borrower a maximum amount of money he/she can
- Line or credit-
Cash or securities that can be immendiately 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. Ex. Advertising is a marketing tool. (TV, Radio, Flyers)
- Marking-
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. Investor 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. Borrowers need to disclose much less information about themselves to obtain online credit, and online credit companies make credit decisions much more quickly 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 incurs that are not part of producing the goods or services its sells, but which are required to operate legally and efficiently. Ex. The salary the businesses pays its accountant is overhead – these funds don’t help us sell more products, but you need your accountant to keep your financial records and submit all required filings.
- Overhead
– Owning an asset without any associated debt. Ex. You paid off your car so you own it free and clear.
- Own “Free and clear”
- When two or more individuals own a company. Partners are taxed on the profits of the company, and personally liable for any debts or judgements against the company.
- Partnership
The amount of money borrowed.
- Principal
A Latin phrase (for the sake of form) that in business means a projection of future financial performance. A pro forma usually takes the form of a projection of future revenues and cost.
- Pro Forma
The ability to find solutions to difficult or complex issues. The process of working through the details 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. Some businesses make quarterly reports.
- Quarter
Real estate is property and the building(s) 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. The down payment the buyer makes is called the buyer’s “equity”.
- Real Estate
Debt that includes a legal obligation by the borrower to repay the debt personally if the business in unable to make its scheduled debt payment. A secured debt can be guaranteed by the entrepreneur or by any credit-worthy guarantor.
- Secured Debt
