test 3 Flashcards
the right to take possession until a debt is repaid.
Lien
A special type of corporation where individual’s owners (or members) are taxed on the profit of the company, but the corporation (not the member) is liable for debts or judgement against the company.
Limited Liability Corporation (LLC)
- A loan provides the borrower a maximum amount of money he/she can borrow – the borrower can then access or use that line of credit for only as much as they need at any particular time.
Line of Credit
Cash or security that can be immediately turned into cash, which can be then repay any loan amount outstanding.
Liquid Assets
The state agency that collects state taxes
Louisiana Department of Revenue
How a business communicates a large numbers of customers, motivating them to learn more about the business and its offerings. EX: Advertising is marketing tool (TV, Radio, Flyers)
Marketing
The date a loan is repaid in full.
Maturity
A person who coaches and supports an entrepreneur or 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 purchases and held together. Investments purchases mutual funds because they are less risky than holding any individual stocks.
Mutual Fund
“net” means revenues after coats.
Net Income
A payment that is owned every month
Obligation
Debt obtained from a number of online companies. Borrowers need to disclose much less information about themselves to obtain online credit, and online credit companies make credit decisions much more quickly than banks. For these reasons, online credit is much more expensive for borrowers than bank loans.
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 insures that are not part of producing the goods or services its sells, but which are required to operate legally and efficiently. EX: the salary businesses pays its accountant is overhead these funds don’t help us sell more products, but you need your financial records and submit all required fillings.
Overhead
