Terms Flashcards
revenue
income coming into business
expenses
payments involved in running business
profit
revenue- expenses
shortage
when demand exceeds supply
surplus
when supply exceeds demand
obsolete
no longer produced
limited liability
personal finances is separate from business finances
unlimited liabilty
personal finances and business finances have no barrier. they are one and the same.
dividends
the money given to shareholders by companies based on the profits.
stock
the asset of the business that you can invest into
share
a portion of the stock that you can invest into
bonds
loan from you to company
liabilities
something you owe. a debt
liquidity
how quickly something can be turned into cash
asset
something you have that has value
interest
the extra money put on on top of the money due. extra charge
entrepreneur
person who starts a business
innovation
a new idea/ method/ product. improving existing product
embezzelment
theft of money when is put in your possession in trust
CSR
Corporate Social Responsibility. The responsibility a business has to customers, investors, employees
retention
steps you take to keep your employees
straight commission
you get payed based on the sales you make
free market
price is determined by supply / demand
