voc. test 3 Flashcards
The right to take procession of collateral until a debt is repaid.
Lien
A special type of corporation where individual owners (or members) are taxed on the profits of the company, but the corporation (not the members) is liable for debts or judgments against the company.
Limited Liability Corporation (LLC)
A loan that 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 money as they need at any particular time.
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. Ex. Advertising is a marketing tool. (TV, Radio, Flyers)
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. Investors purchase mutual funds because they are less risky than holding any individual stock.
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. 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 expansive 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 incurs that are not part of producing the goods or services its sells, but which are required to operate legally and efficiently. Ex. The salary the businesses pays its accountant is overhead – these funds don’t help us sell more products, but you need your accountant to keep your financial records and submit all required filings.
Overhead
