Unit 9: Raising Finance Flashcards
What does a collateral mean?
A collateral is something guaranteed as security for repayment of a loan, to be lost in the event of a default; usually a house (TH=หลักประกัน)
What does principal mean?
Principal is the original sum invested or lent (TH=เงินต้น)
What do installments mean?
Installments are the sum of money due as one of several equal for something, spread over an agreed upon period of time (TH=ค่างวดเงินผ่อน)
What does equity mean in terms of raising finance?
Raising finance by equity means to sell part of your company in return for money.
What does seed capital mean?
Seed capital is the money allocated to initiate a project (TH=เงินทุนตั้งต้น)
What do blue-chip stocks mean?
Blue-chip stocks are stocks in the very best companies.
What is a pawnbroker?
A pawnbroker is an individual or business that offers secured loans to people with items of personal property used as collateral
What is a pawnbroker?
A pawnbroker is an individual or business that offers secured loans to people with items of personal property used as collateral
What are business angels?
Business angels are affluent individuals who provide capital for a business start-up, usually in exchange for ownership equity.
What is an exit strategy?
An exit strategy is a preplanned means of removing oneself from a situation that is likely to become difficult or unpleasant.
What does insolvency mean?
Insolvency means the inability to pay one’s debts or when the liabilities exceed the assets.
What is an indemnity?
Indemnity is the security against a loss or other financial burden; TH = การชดเชยค่าเสียหาย
What is the difference between administration and liquidation in finance?
Administration is when a temporary staff gives administrators time to devise a rescue strategy; goal = to protect from creditors
Liquidation is the sale of company assets to make payments to creditors on a proportional basis.
What does the phrase “money talks” mean?
It means money has influence.
What does the phrase “don’t put all your eggs in one basket” mean?
It means don’t invest all your money into one thing.
What does the phrase “you have to speculate to accumulate” mean?
It means you need to take a risk to make money.
What does the phrase “don’t throw good money after bad” mean?
It means don’t keep investing after you’ve lost.
What does the phrase “lend your money and lose a friend” mean?
It means don’t lend you money to friends.
What does the phrase “out of debt, out of danger” mean?
It means don’t borrow money.
What does the phrase “he who pays the piper calls the tune” mean?
It means if you’re paying, you make the decisions.
What does the phrase “beggars can’t be choosers” mean?
It means if you don’t have money, you can’t choose.
What does bankruptcy mean?
Bankruptcy is a legal procedure for liquidating a business that cannot fully pay its debts out of its current assets.
What are the two types of bankruptcy?
1) Voluntary bankruptcy - filed by the insolvent debtor
2) Involuntary bankruptcy - forced on court orders issued on creditor’s petition
What are the two types of insolvency?
1) Cash insolvency - not enough cash; usually does not result in bankruptcy
2) Assets insolvency - not enough assets; liquidation is almost certain
