Business Basics
The easiest type of business to start with one owner.
The analysis of a person's ability to repay a loan.
Assets minus liabilities equals this.
What is net worth?
The phase when unemployment and inflation are highest?
What is a trough?
The branch of government that creates laws affecting businesses.
What is the legislative branch?
A business not associated with the government.
What is the private sector?
The cost a lender charges you to borrow money.
What is an interest rate?
What you pay back in addition to the principle when borrowing money.
A drop in the economy lasting less than 6 months.
What is a recession?
The part of the economy made up of businesses owned by individuals instead of the government.
What is the private sector?
Money raised in exchange for part ownership in a company.
What is equity?
Someone who loans you money or extends credit.
Who is a creditor?
Money contributed by investors who gain ownership?
What is equity?
The phase that follows a trough.
What is expansion?
Government action that can impact interest rates.
What is economic policy?
The term for everything a business owns.
What are assets?
Used to assure repayment of a loan.
What is collateral?
A lender checks this before deciding to approve a loan.
What is your credit worthiness?
During a recession, these two things are high.
What are Inflation and Unemployment?
A government effect that can slow business growth during inflation.
What is raising interest rates?
The term for everything a business owes.
What are liabilities?
The number considered a perfect credit score.
What is 850?
An item a bank may take if a borrower fails to repay a collateral-backed loan.
What is the collateral?
The low point in the business cycle before recovery.
What is the trough?
The government sector that private business do NOT belong to