test 3 Flashcards
the right to take possession of collateral until a debt is paid
lien
A special type of corporation where individual owners or members are taxed on the profile of the company
Limited liability corporation ( LLC)
A loan that provides the borrower a maximum amount of money he/she can borrow.
line of credit
Cash or securities that can be immediately turned into cash, which can then repay any loan amount outstanding.
liquid assets
The state agency that collects state taxes.
Louisiana Department of Revenue
How a business communicates to large numbers of customers, motivating them to learn more about the business and its offerings.
Marketing
The date a loan is repaid in full.
maturity
A person who coaches and supports an entrepreneur or a student studying to become an entrepreneur.
Mentor
The money a person borrows to buy real estate.
Mortgage
An investment security that includes many different stocks purchased and held together
mutual fund
”Net” means revenues after costs.
Net Income
A payment that is owed every month
Obligation
Debt obtained from a number of online companies .Easier to get more expensive to have.
Online Credit
When a company issues a check or makes a financial commitment for an amount greater than the amount the company has deposited in the bank. Also called a “Bounced Check”.
Overdraft
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.
Overhead
Owning an asset without any associated debt.
Own “Free and Clear”
When two or more individuals own a company.
Partnership
The amount of money borrowed.
Principle
A Latin phrase (For the sake of form) that in business means a projection of future financial performance.
Pro Forma
The ability to find solutions to difficult or complex issues.
Problem Solving
Revenues minus costs.
Profit
Unit Price minus costs of goods sold.
Profits per unit
Most projections are for a year. A quarter means 3 months.
Quarter
Real Estate is property and the buildings on it.
Real Estate
Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment.
Secured debt
