KEW WORDS I MUST KNOW 😰 Flashcards
Corporate bond
Debt security that is issued by a company to raise money via investors. Investors will get a certain amount of interest .
Break even output equation
Fixed cost / contribution per unit
( the amount of profit from each unit of a product that it sells )
Debt financing
Borrowing money that will later be repaid in order to finance a business
Equity
The value ownership in a company ( liabilities-assets owned )
Liability
The type of debt that is owed
Trade credit
When you Purchase goods without paying upfront , it is usually paid at a later date
Venture capital
Money provided by investors to start up or expand a business
Invoice discounting
A provider lends cash to a company up to the value of its unpaid invoices
Capital employed
The total amount of capital a firm uses to operate a business/ value of assets used
Capital expenditure
The money an organisation uses to buy or maintain it’s fixed assets eg. Building , equipment , land
Trade payable
The amounts of money a company owes to its suppliers
Debenture
A loan issued by a business
