Test One Flashcards
money owed by a company to a supplier
Accounts payable
money owed by a customer to a company
Accounts Receivable
individuals that make 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
Assets
debt from a bank
Bank loan
a loan
Bond
a determination of how many units are needed to sell in order to pay for all fixed cost
Breakeven analysis
a company that provides individuals and companies with access to financial markets
Brokerage
proper business behavior beyond complying with legal requirments
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 (called “capital expenditures”)
Cash flow
cash, publicly traded stocks, government bonds, or corporate bonds that can be quickly turned into cash
Cash instruments
equipment, inventory or other goods that are pledge 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 a secret
Confidentiality
a situation in which an individual might take action to his/her advantage that would be to the disadvantage of a person or company that believes this individual is serving them
Conflict of intrest
unit price minus cost of goods sold
Contribution Margin
action entrepreneurs and companies take that go beyond their financial self-intrest
Corporate social responsibility
a corporation is a person in the eyes of the law
Corporation
cost that make up one unit of what you sell
Cost of goods sold
a loss that an insurance company will reimburse a policyholder for in the event 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)
