Money Flow
If your in DEBT what could you get from the bank to get you out of your struggle?
BANK LOAN
Debt from a bank. Banks require much more information from potential borrowers, and take more time to make a lending decision based on a great deal of analysis. Therefore bank loans are less expensive than online lines of credit.
What is the meaning for a protection of the business? (“for the sake of form”)
PRO FORMA
A
Latin
phrase
(“for
the
sake
of
form”)
that
in
business
means
a
projection
of
future
financial
performance.
A
pro
forma
usually
takes
the
form
of
a
projection
of
future
revenues
and
costs.
MARKETING
How
a
business
communicates
to
large
numbers
of
customers,
motivating
them
to
learn
more
about
the
business
and
its
offerings.
Example:
advertising
is
a
marketing
tool.
(TV,
Radio,
Signs,
Flyers)
MENTOR
A
person
who
coaches
and
supports
an
entrepreneur
.
.
.
or
a
student
studying
to
become
an
entrepreneur.
Mentors
have
"been
there,
done
that,"
so
they
are
a
great
source
of
experienced
advice
to
an
entrepreneur
or
a
student.
When you buy a house to rent it out what does that person who is paying the rent pay to you?
NET Income
“Net”
means
revenues
after
costs.
Example:
you
get
$1,000
a
month
for
renting
a
house
you
own
to
a
friend.
The
costs
of
maintaining
the
house
every
month
equal
$800.
That
means
your
“net
income”
from
renting
that
house
to
your
friend
is:
$1,000
-‐
$800
=
$200
per
month
(before
taxes).
What is something you get off of selling a product?
PROFIT
Revenues
minus
costs.
If you pay off your car what can you said your car is now?
FREE AND CLEAR
Owning
an
asset
without
any
associated
debt.
Example:
"I
paid
off
my
car
loan
last
month,
so
now
I
own
my
car
'free
and
clear.'"
What's the buisness called where you buy and sell properties, buildings, etc?
Real Esate
Real
estate
is
property
and
the
building(s)
on
it.
Real
estate
can
be
a
piece
of
land,
or
it
can
be
a
home
on
that
piece
of
land,
or
it
can
be
a
building.
Real
estate
is
typically
purchased
using
a
mortgage.
The
down
payment
the
buyer
makes
is
called
the
buyer’s
“equity.”
WITHOUT what can a company can't go without?
TEAMWORK
Working
with
others
to
address
a
challenge.
Individuals
using
their
skills
in
harmony
with
others
to
complete
a
task.
Effective
teamwork
involves
trust
among
team
members.
Collaboration
and
cooperation.
What is ONE way you could keep your money safe?
Security
An
investment
vehicle.
Different
types
of
securities
include
stocks,
bonds
and
mutual
funds.
What does it mean to have more than 1 location with the buisness with more than 1 owner?
Partnership
When
two
or
more
individuals
own
a
company.
Partners
are
taxed
on
the
profits
of
the
company,
and
are
personally
liable
for
any
debts
or
judgments
against
the
company.
WHAT IS THE PROJECTION CALLED WHEN YOU MAKE THE PROJECTION FOR A YEAR'S WORTH OF MONEY?
QUARTER
Most
projections
are
for
a
year
(or
“annual”
projections).
A
“quarter”
means
three
months.
New
and
seasonable
businesses
are
most
likely
to
make
quarterly
projections
to
make
sure
they
are
on
track
for
success.
Who is the person who keeps the companying going with the supplies?
SUPPLIER
A
company
that
provides
a
good
or
service
to
another
company.
Example:
"The
beauty
products
distributor
is
my
supplier
-‐
I
buy
the
hair
care
products
I
sell
to
my
customers
from
my
distributor."
SELF - MOTIVATED
The
ability
to
pursue
a
task
without
being
told
to
by
someone
else.
Individuals
who
are
self-‐motivated
can
find
the
strength
to
start
and
then
finish
a
task
without
giving
up.
Which way is easier to money to come in and it's also faster at making decsions then banks?
ONLINE CREDIT
Debt
obtained
from
a
number
of
online
companies.
Borrowers
need
to
disclose
much
less
information
about
themselves
to
obtain
online
credit,
and
online
credit
companies
make
credit
decisions
much
more
quickly
than
banks.
For
these
reasons,
online
credit
is
much
more
expensive
for
borrowers
than
bank
loans.
WHAT IS THE ABREATHEATED TERM WHERE THE SPECIAL TYPE OF CORUPTATION IS TAXED ON THE PROFITS OF THE COMP?
LLC
A
special
type
of
corporation
where
individual
owners
(or
“members”)
are
taxed
on
the
profits
of
the
company,
but
the
corporation
(not
the
member-‐
owners)
is
liable
for
debts
or
judgments
against
the
company.
If your first made buisness is working lots of hours and it's not getting cash investment, what is the called?
SWEAT EQUITY
The
hard
work
a
small
business
owner
puts
into
forming,
founding
and
operating
his/her
business
–
small
business
owners
typically
work
very
long
hours.
Sweat
equity
is
as
important
as
any
capital
but
it’s
not
a
cash
investment.
IF YOUR JOB IN A COMPANY IS TO PERSONALLY BE LIABLE FOR THE DEBTS OR JUDGMENTS AGAINST THE COMPANY IT IS A WHAT TYPE OF BUSINESS?
SOLE PROPRIETORSHIP
An
individual
that
owns
a
company.
Sole
proprietors
are
taxed
on
the
profits
of
the
company,
and
are
personally
liable
for
any
debts
or
judgments
against
the
company.
If your company needs to take right to take possesion until the debt is getting repaied means what?
LIEN
The
right
to
take
possession
of
collateral
until
a
debt
is
repaid.
Example:
"The
bank
has
a
lien
on
my
company's
inventory.
If
we
can't
repay
the
bank
loan,
the
bank
has
the
right
to
take
possession
of
our
inventory
and
sell
it
to
pay
themselves
the
money
we
owe
them."
PRINCIPAL
The
amount
of
money
borrowed.
What's the apartment called where the LA collects taxes to keep the country going?
Louisiana Department of Revenue!!!!
The
state
agency
that
collects
state
taxes.
When you actions are dedacated to a set of why you started this buisness in the first place?
MISSION - DRIVEN
When
an
entrepreneur’s
actions
and
decisions
are
guided
by
a
set
of
beliefs
about
how
he
/
she
wants
the
business
to
succeed.
What is the shares of ownership in a company called?
STOCKS
Shares
of
ownership
in
a
company.
Stock
is
a
general
term
of
ownership
in
any
company.
Example:
if
investors
say
they
own
stocks,
they
are
generally
referring
to
their
overall
ownership
in
one
or
more
companies.
If the company starts to sell their products with signs of discount they can believe they are getting profit. What is this called?
SELLING
How
a
business
moves
a
specific
customer
to
buy
their
service
or
offering.
Example:
a
special
event
in
a
store's
parking
lot
featuring
discount
prices
is
selling.
WHAT'S THE SPECIAL LONE CALLED WHERE IT PROVIDES THE COMPANY MAX AMOUNT OF MONEY?
LINE OF CREDIT
A
loan
that
provides
the
borrower
a
maximum
amount
of
money
he/she
can
borrower
-‐
the
borrower
can
then
access
or
use
that
line
of
credit
for
only
as
much
money
as
they
need
at
any
particular
time.
Example:
"I
have
a
$40,000
line
of
credit
with
the
bank.
I
only
need
to
borrow
$5,000
to
increase
my
inventory
for
the
holiday
season,
so
I've
only
used
$5,000
of
my
$40,000
line
of
credit
to
minimize
my
interest
payments."