money
account payable
money owed by a company to a supplier.
breakeven analysis
a determination of how many units you need to sell to break even
collateral
this is pledged to the bank if they cannot make a necessary payment.
default
failure to repay a loan
fixed costs
costs that do not vary based on units sold.
account receivable
money owed by a customer to a company.
capital(or equity)
funds contributed by investors to a business expecting a significant return.
conflict of interest
when an individual takes advantage of something that is to your disadvantage.
funds lent to a business with an agreement the business will repay the lender with intrest
garantor
a credit-worthy individual or business with sufficient liquidity that promised to repay a loan if the debt holder cannot.
angel investors
individuals that make small investments into something and dont expect much in return.
capital expenditures
equipment a business buys to use for many years.
contribution margin
unit price minus cost of goods sold
crowdfunding
liability an obligation you have to pay someone else money.
an obligation you have to pay someone else money.
assets
anything of value
cash flow
brokerage
a company that provides individuals and companies with access to financial markets
dividend
money paid by a company to a person that owns stock in that company.
LLC
a special type of corporation where individual owners are taxed on profits of the company but the corporation is liable for debts or judgments against the company.
bond
a loan
Commission
money earned when something is sold
cost of goods sold
cost that make up one unit of what you sell
go/no go
decision point where an entrepreneur makes the final decision on whether or not to launch a new enterprise
profit
revenues minus cost.