TEST 1 Flashcards
money owed by a company to a supplier.
Account payable
money owed by a customer to a company.
Account receivable
individual that makes small investments in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on the investment.
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
Capital (or equity)
expenditures on equipment the business will use for many years.
Capital expenditures
total revenues minus total cost minus one-time expenditures on equipment that will be used for many years .
Cash Flow
cash, publicly traded stocks, governments bonds, or corporate bonds that can be quickly turned into cash.
Cash instruments
equipment, inventory 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.
Comfort engaging with strangers
money earned when something is sold
Commission
a promise to keep information you learn secret. This promise of often formalized by singing a Non-Dis-closer 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 the individual is serving them.
CONFLICT OF INTEREST
unit price minus cost of goods sold.
CONTRIBUTION MARGIN
actions 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 judgements.
CORPORATION
costs that make up one unit of what you sell. These can be labor costs as well as material costs.
COST OF GOODS SOLD
a loss that an insurance company will reimburse a policyholder for in the events 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)
