Investing In Your Business
What is personal savings?
Least risky source of capital for starting a business
What is revenue?
Total income generated by a business before expenses are deducted
What is financial knowledge?
Being educated about this allows for better financial decisions in a business
What is the stock market?
Network where stocks are bought and sold
What is a secured loan?
Type of loan is backed by collateral, such as a house or car
What is profit margin?
Helps businesses determine the ideal price for products by analyzing costs and revenue
What is financial management?
Tracking statements to control expenses and optimize costs
What is the company's benefit?
Company's can raise capital
What is compound interest?
Type of interest is calculated on both the principal and any accumulated interes
What is the break-even point?
Identifying this point allows businesses to know when they will start making a profit
What is reinvesting?
Using profits to fund expansion and ensure resilience
What is the investors benefit?
Earn returns through dividends of by selling there shares at a higher price
What is the avalanche method?
Debt repayment method focused on paying off high-interest debt first to minimize costs
What is the off-peak season?
Something that happens or that is used at times when there is least demand for it
Why is growing your business important?
resilience
What is the difference between shareholder and stakeholder?
Shareholder own stock in a company and have direct financial interest in its success. Stakeholder included anyone affected by a company's actions.