test 1 Flashcards
money owed by a company to a supplier.
accounts payable
money owed by a customer to a company.
accounts receivable
individuals that make small investments in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on the investment . they are typically friends and family who know the business owner and want to see them succeed.
angel investors
something of value. anything owned.
assets
debt from a bank.
bank loan
a loan. a bond is a security that investors buy and sell, that represents a legal obligation from the company issuing the bond that they will repay the funds they received when they issued the bond.
bond
a determination of how many units are needed to sell in order to pay for all fixed costs.
break even analysis
a company that provides individuals and companies with access to financial markets.
brokerage
proper business behavior beyond complying with legal requirements.
business ethics
funds contributed by investors to a business. investors contribute capital to a business because they expect a significant return on their investment when the business succeeds.
capital (or equity)
expenditures on equipment the business will use for many years.
capital expenditures
total revenues minus total cost minus one-time expenditures
cash flow
cash, publicly traded stocks, government bonds, or corporate bonds that can be quickly turned into cash. Cash instruments can be turned into cash values that are predictable and available to all holders of the cash instrument.
cash instruments
equipment, inventory or other or other goods that are pledged to the bank in the case the company cannot make a loan payment.
collateral
the ability to interact in a friendly and effective way with unfamiliar people. The ability to see welcoming and easy to talk to, even with people who are different in age, appearance, or background.
comfort engaging with strangers
money earned when something is sold.
commision
a promise to keep information you learn secret. This promise is often formalized by signing a non-disclosure agreement (or NDA).
confidentiality
a situation in which an individual might take an action to his/her advantage that would be to the disadvantage of a person or company that believes this individual is serving them.
conflict of interest
unit price minus cost of goods sold.
contribution margin
action entrepreneurs and companies take that go beyond their financial self-interest.
corporate social responsibility
a corporation is a person in the eyes of the law. The corporation is taxed for profits and is liable for any debts or judgement. Corporations are owned by shareholders (individuals or other corporations).
corporation
costs that make up one unit of what you sell. These can be labor costs as well as material costs.
costs of goods sold
a loss that an insurance company will reimburse a policyholder for in the event of a claim.
covered loss
funds lent to a business with an agreement that the business will repay the lender with interest.
credit (or debt)
