Micro Enterprise Flashcards
lien
the right to take possession of collateral until a debt is repaid
Limited Liability Corporation(LLC)
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 or judgement against the company
Line of Credit
a loan that provides the borrower the max amount of money they can borrow.
Liquid Assets
cash or securities that can be immediately turned into cash
Louisiana Department of Revenue
the state agency that collects state taxes
marketing
how a business communicates to large numbers of customers.
Maturity
the date a loan is repaid in full
Mentor
a person who coaches and supports an entrepreneur or a student studying to become one
Mortgage
the money a person borrows to buy real estate
Mutual fund
an Investment security that includes many different stocks purchased and held together
Net income
“net” means revenues after costs
obligation
a payment that is owed every month
Online Credit
debt obtained from a number of online companies
Overdraft
when a company issues a check or makes financial commitment for an amount greater than the amount the company has deposited in the bank, also called a “bounced check”
Overhead
costs that a business incurs that are not part of producing the goods or services it sells but which are required to operate legally and efficiently.
Own “Free and Clear”
owning an asset without any associated debt
Partnership
when two or more individuals own a company
Principal
the amount of money borrowed
Pro Forma
a Latin phrase (for the sake of form) that in business means a projection of future financial performance.
Problem Solving
the ability to find solutions to difficult or complex issues.
Profit
revenues minus costs
Profits Per Unit
unit price minus cost of goods sold
Quarter
most projections are for a year, “quarter” means three months.
Real Estate
real estate is property and the building(s) on it. Real estate is usually purchased using a mortgage. The down payment is called “equity”
Secured Debt
Debt that includes a legal obligation by the borrowed to repay their debt personally if the business is unable to make its scheduled down payment.
