test 3 Flashcards
lien
the right to take possession of collateral until debt is repaid.
limited liability corporation (LLC)
a special type of corporation where individual owners (or members) are taxed on the profits of the company
line of credit
a loan that provides the borrower a maximum amount of money he/she can borrow
liquid assets
cash or securities that can be immediately turned into cash
Louisiana department of revenue
the state agency that collects state taxes
marketing
how a business communicates to large numbers of customers, motivating them to learn more about the business and its offerings
maturity
the date a loan is repaid in full
mentor
a person who coaches and supports an entrepreneur or a student studying to become an entrepreneur
mortgage
the money a person borrows to buy real estate
mutual fund
an investment security that includes many different stocks purchased and held together
net income
“Net” means revenues after costs
obligation
a payment that is owed every month
online credit
debt obtained from a number of online companies. borrowers need to disclose much less information about themselves to obtain online credit
overdraft
when a company issued a check or makes a financial commitment for an amount greater than the amount the company has deposited in the bank
overhead
cost that a business incurs that are not part of producing goods or services its sells
own “free and clear”
owning an asset without any associated debt
partnership
when two or more individuals own a company
principal
the amount of money borrowed
pro forma
a Latin phrase (for the sake of form) that in a business means a projection of future financial performance
problem solving
the ability to find solutions to difficult or complex issues
profit
revenues minus costs
profits per unit
unit prices minus costs of goods sold
quarter
most projections are for a year
real estate
real estate is property and the buildings on it
