Financial Concepts
If a policyholder makes a claim, the insurance company will reimburse them.
What is Covered Loss
Funds contributed by investors; Investors expect a significant return on their investment
What is Equity or Capital
Abilities an individual develops that help them succeed
What is Personal Capabilities
12 month period a company uses to report financial results
What is a Fiscal Year
Assets that are not already pledged as a guarantee to repay another loan
What is Unencumbered
Money owed by a customer to a company
What is Accounts Receivable
Nonphysical assets created by individuals or companies that hold the exclusive legal right to commercialize; Copyright: writing; Patent: inventions; Trademark: brand or image
What is Intellectual Property
Individuals that make investments where they do not expect an immediate return; Usually friends and family
What are Angle Investors
A determination of how many units are needed to sell in order to pay for all fixed cost.
What is break even analysis
Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment
What is Secured Debt
A legal agreement that an assets is part of a guarantee to a lender, when the lender can take possession of the assets and sell it to recover the funds owed by a borrower in the event the borrower is unable to make a required debt payments
What is a Pledge
A loan that provides the borrower a maximum amount of money that they can borrow.
What is Line of Credit
Creditworthy individual or business with significant liquidity that promises to repay a loan in the event that the debtholder can’t make a required payment
What is a Guarantor
Spending money on equipment that the business will use for many years
What are Capital Expenditures
The right to take possession of collateral until debt is repaid
What is Lien
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
What is Overdraft
Ratios a lending company calculate about an individual or a company to determine how likely they are to have the liquidity to repay debt payments that are required in a loan
What are Liquidity Ratios
The hard work a small business owner puts into forming, founding and operating their business
What is Sweat Equity
Cash, publicly traded stocks, government bonds, or corporate bonds that can be quickly turned into cash
What are Cash Instruments
How a business communicates to large numbers of customers, motivating them to learn more about the business and its offerings
What is Marketing
Services a company uses to maintain proper financial record , legal filings and employee documentation
What are Outside Services
Debt obtained from a number of online companies; Need less information, faster than bank credit
What is Online Credit
Strangers learn about a business online and then decide if they want to make an investment
what is Crowdfunding
Legal decision requiring a person or company to pay another person or company
What is a Judgment
Another type of debt other than a mortgage
What are Notes Payable