Business Financials (1-1)
The ______ motive underlies capitalist economies, and provides much of the motivation for risk-taking and innovation.
Profit
When owners put up their own cash to purchase ownership of their business, they receive ______ in return.
Owner's Equity
Feel like you can handle things yourself? This ownership structure only requires one person, but be careful of the added liability!
Sole Proprietorship
If U.S. exports $150b in goods to Japan one year, and imports $215b in goods, they are running a trade ________.
deficit
Proforma
Return on Investment (ROI)
This is a second common way to finance a new business, but be careful! You're likely paying added interest costs.
Debt
This ownership structure appeals to lawyers and doctors, because it protects them from each other's mistakes and still offers limited liability.
Limited Liability Partnership (LLP)
This type of producer is at the start of the supply chain, and produces things ranging from lumber to fish to precious metals.
Raw Materials Producer
This financial statement includes cash-only items.
Statement of Cash Flows
The fundamental accounting equation: Assets = ______ + _______.
Liabilities, Equity
This business function is responsible for recording, maintaining, and reporting financial records.
Accounting
This ownership structure is extremely friendly for raising capital, as it includes unlimited shares that can be sold to any entity.
C Corporation
_______ is a major trend of modern economies, which makes it easier for consumers to purchase goods from distant countries.
e-Commerce
This financial statement is a "snap-shot" of a company's financial position at a single moment in time.
Balance Sheet
A company pays to send their team to a trade show and pitch an industry on their new product. It would be recorded in this category of operating expenses:
Sales and Marketing
______ represents the ease with which an asset can be converted to cash.
Liquidity.
Registering as a corporation has many advantages, but one disadvantage is ________, which taxes both corporate profits and capital gains/dividends.
Double Taxation
Distribution is the corporate function involved in transporting goods as efficiently, _______, and _______ as possible.
inexpensively, carefully.
According to the text section, cash is like ______ to a business.
Oxygen
The formula for Gross Profit: _______ - _______.
Revenue - COGS.
The formula for working capital: ______ - ______.
Current Assets - Current Liabilities.
This business ownership structure can only sell ownership shares within the U.S., and only to certain types of entities.
S Corporation.
These companies were mentioned in lecture as providing shareholder value, but often failing to meet the needs of consumers or society more broadly.
Social Media Companies / Meta
Gross Profit / Revenue