test 1 Flashcards
money owed by a company to a suppler.
accounts payable
money owed by a customer to a company
accounts receivable
individuals that make small investments in a enterprise or 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 wont see them succeed
angel investors
something of value anything owned
assets
debt from a bank. Banks require much more information from potential borrowers and take more time to make a lending decisions based on a great deal of analysis. Therefore bank loans are less expensive then online lines of credit
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 that received when they issue the bond
bond
a determination of how many units are needed to sell in order to pay for all fixed costs.
breakeven analysis
a company tat provides individuals and companies with access to financial markets
brokeage
proper business behavior beyond complying with legal requirements
business ethics
funds contributed by investors to a business b/c they expect a significant return on other investments when the business successes’
capital
expenditures on equipment the business will use for many years
capital expenditures
one time expenditures called capital expenditures on equipment that will be used for many years
cash flow
cash publicly traded stocks government bonds or cooperate bonds that can be quickly turned into cash. cash instruments can be turned into cash at values that are predictable and available to all holders of the cash instrument
cash instruments
equipment inventory or other goods that one 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 seem unwelcoming 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 odd
commission
a promise to keep information you learn secret this promise is often for malized by singing a non discloser agreement
confidentiality
a situation in which an individual might take an action to his/her advantage that would be to the discharges of a person
conflict of interest
unit price minus cost of goods sold
contribution
actions entrepreneurs and companies take that go beyond their financial self interest
corporate
a corporations a person in the eyes of the law. The corporation is taxed for profits and is liable for any debts or judgments.
Corporation
Cost that make up one unit of what you sell.
Cost of Goods Sold
A loss that an insurance company will reimburse a policy holder for the event of a claim
covered loss
funds tent to a business will repay the lender with interest
credit / debt
