M3 Flashcards
TYPES OF FINANCE
○ Banking
○ Leverage or debt
○ Investments
○ Money
○ Markets
○ Credit
Who said this
“Money isn’t the most important thing in life, but it’s reasonably close to oxygen on the ‘gotta have it’ scale.”
ZIG ZIGLAR
What did Zig Ziglar say
“Money isn’t the most important thing in life, but it’s reasonably close to oxygen on the ‘gotta have it’ scale.”
YOU DON’T NEED MONEY TO MAKE MONEY
● Follow your passion
● Fake it ‘til you make it
● Entrepreneurs are born, not made
● It takes money to make money
T/F “I assumed that raising money was even an option.”
FALSE : NOT EVEN
T/F? “Access to start-up capital even when you don’t need it can stunt your growth.”
T
T/F?
“It does not take money to make a whole lot of money.”
FALSE: It often takes money
An involuntary fee levied on individuals or corporations and enforced by a government entity- whether local, regional, or national; in order to finance government activities.
TAX
TYPES OF TAXES
○ Income tax
○ Corporate tax
○ Sales tax
○ Property tax
○ Tariff
○ Estate tax
REASONS OF NOT PAYING TAXES
○ Having no idea on how to plan what is needed to be paid: ignorance
○ More concerned with perfecting the product
○ More concerned with selling the product
○ Greediness, confusion, forgetfulness
PAYING TAXES IDEAS
○ Search for basic accounting information
○ Find an accountant
○ Have a plan
T/F?
A CHECK IN HAND MEANS SOMETHING
F: IT MEANS NOTHING
Is a document which orders a bank to pay a particular amount of money from a person’s account to another individual’s or company’s account in whose name the checkbook has been made or issued
CHECK
Is a slang for a check that cannot be processed because the account holder has nonsufficient funds.
BOUNCED CHECK
NSF MEANS
NONSUFFICIENT FUNDS
WHY DO CHECK BOUNCE?
- YOU CAN WRITE ANYTHING
- ACCIDENTS HAPPEN
- CLOSE ACCOUNT
- STOP PAYMENT
- ISSUE WITH THE CHECK
Also known as “money”, in physical form
CASH
Essentially the movement of money in and out of your business.
CASH FLOW
TYPES OF CASH FLOW
- OPERATING ACTIVITIES
- INVESTING ACTIVITIES
- FINANCING ACTIVITIES
all the things a company does to bring its
product and services to market on an
ongoing basis.
OPERATING ACTIVITES
refers to the purchase and sale of long term
assets and other business investment,
within a specific reporting period.
INVESTING ACTIVITIES
activities that involve the inflow and
outflow of money ( buy and sell of product or asset, stocks loans, maintaining accounts.
FINANCING ACTIVITIES
when you borrow money that has to be paid back usually with interest
LOAN
TWO CATEGORIES OF LOAN
- UNSECURED LOANS
- SECURED LOANS
is a loan that doesn’t require any type of
collateral instead relying on a borrower’s assets as security (students loans, personal loans, credit cards)-interest and fees.
UNSECURE LOANS
are business or personal loans that require
collateral as a condition of borrowing. , lower interest rate, huge amount, ( mortgages and car loans)
SECURED LOANS
TOP FOUR MOST COMMON TYPES OF BANK LOANS
○ Personal Loan
○ Credit Card
○ Home Equity Loan
○ Business Loan
T/F?
BORROW MONEY BEFORE YOU NEED IT
T
T/F?
“A bank is a place that will lend you money if you can prove that you need it.”
F: YOU DON’T NEED IT
T/F?
PREPAYMENT IS KING: REGARD STANDARD PAYMENT TERMS
F: REGARD
Settlement of debt or installment loan in advance of its official due date.
PREPAYMENT
STRATEGIES TO ENSURE FASTER PAYMENT
○ Build trust immediately
○ Be clear with your payment terms
○ Be aggressive with your timeline
T/F?
HIRING A PERSONAL ACCOUNTANT IS A MONEY WELL SPENT
T
THREE REASONS TO HIRE AN ACCOUNTANT
○ Accountants save you money
○ Accountant save you time
○ Accountant are not that expensive
T/F?
THERE’S A DOWNSIDE ON HAVING INVESTORS
T
is an asset or item acquired with the goals of generating income or appreciation
INVESTMENT
In economic sense, it is the purchase of goods that are not consumed to day but are used in the future to create wealth
INVESTMENT
In finance, it is a monetary asset purchased with the idea that the asset will provide income in the future or will later be sold at a higher price for a profit
INVESTMENT
TYPES OF INVESTORS
○ Banks
○ Angel Investors
○ Peer-to-peer Lenders
○ Venture Capitalists
○ Personal Investors
ASSUMPTIONS ABOUT OUTSIDE INVESTORS
○ Finding investors will be easy
○ When you receive a yes from an investors, all your
money problems will go away
○ Business will immediately get better
Also called the total sales
REVENUE
The income generated from sale of goods or
services, or any other use of capital or assets, associated with the main operations of an organization before any costs or expenses are deducted
REVENUE
Sales Price + Number of units sold
SALES REVENUE
WHY SHOULD A BUSINESS FOCUS ON BUILDING
REVENUE?
○ Attracts more investors
○ Profitability
○ Employees
○ Customers
Who said this?
“If I have nothing to sacrifice, I have nothing to gain.”
CATHERINE NDERBA
What did Catherine Nderba say?
“If I have nothing to sacrifice, I have nothing to gain.”
T/F?
Use only one bank to minimize risk
FALSE: USE DIFFERENT BANKS
