vocab 3 Flashcards
the right to take possession of collateral until a debt is repaid
lien
a special type of corporation where individual owners are taxed on the profits of the company but the corporation is liable for debts or judgements against the company.
Limited Liability Corporation
a loan that provides the borrower a maximum amount of money he/she borrower- 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 assests
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
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 a 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 cost
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 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 incurs that are not part of producing the goods or services it sells but which are required to operate legally and efficiently
overhead
owning an asset without any associated debt
own “free and clear”
when two or more individuals own a company
partnership
the amount of money borrowed
principal
a latin phrase that in business means a projections of future financial programs
pro forma
the ability to find solutions to difficult or complex issues.
problem solving
revenues minus costs
profit
unit prices minus cost of goods sold.
profits per unit
most projections are for a year. a “quarter” means three months
quarter
real estate is property and the buildings on it. real estate can be a piece of land or can be a home on that piece of land or it can be a building
real estate
