Pathways
percent of sales paid to investors
royalty
a business with an owner, but no employees
micro business
provides equity finance to a private company
private investor
a long term contractual agreement, pay back regular payments to pay back an investment
bank loan/mortgage
The 3 financial statements
Income, cash, balance
income earned over a period of time
turnover
a business with 0-19 employees, > $10 million revenue in a year
small business
many investors giving small contributions
crowdfunding
when a business has more assets than what is needed for daily operations
over capitalisation
Revenue - COGS
Gross profit
independent people working under franchise name
franchisee
a business with 20-199 emplyees, more than $10 million revenue in a year
Medium business
a business owner who privides his own equity to a business
self funding
when a business has less assets than what is needed for daily operations
under capitalisation
Total revenue - total costs
Net Profit
business owner- sells the right to brand and trade secrets
franchisor
a business with 200 or more emplyees, more than $250 million revenue in a year
large business
provides equity finance with plans to grow and expand a business
venture capitalist
A payment for a bank service. Measured by a percent of the loan amount
interest/interest rate
Name 3 current assets
cash, AR, Inventory, prepaid insurance, etc.
monetary value based on company reputation
goodwill
any business that has 1-199 employees
small-to-medium entrprises
a private investor during start up stage
angel investor
The accounting equation, used on the balance sheet
A = L + E
Name 3 current liabilities
Wages, AP, tax payable, etc.