Financial Basics
This term refers to a plan for managing income and expenses.
Budget
A numerical representation of an individual’s creditworthiness.
What is a credit score?
This document summarizes revenue and expenses over a period.
What is a Income Statement
This stage represents the introduction of a product to the market.
What is the emerging stage?
The relationship between the availability of a product and the desire for that product.
What is supply and demand?
This rule suggests allocating 50% to needs, 30% to wants, and 20% to savings.
What is the 50-30-20 rule?
Organizations that collect and report information about consumers' credit history.
What are credit bureaus?
A financial report showing assets, liabilities, and equity at a specific time.
What is a balance sheet?
During this phase, a product experiences increasing sales and market acceptance.
What is the growing stage?
Tangible items that can be bought or sold.
What are goods?
These expenses remain constant each month, such as rent or mortgage.
What are fixed expenses?
The five factors that influence a person's creditworthiness: Character, Capacity, Capital, Collateral, and Conditions
What are the 5 Cs of Credit?
This statement tracks the inflow and outflow of cash in a business.
What is a cash flow statement?
The stage where a product reaches its peak market share and sales begin to stabilize.
What is maturity?
This term describes how much of a product is available in the market.
What is supply?
These expenses can fluctuate, such as groceries or entertainment.
What are variable expenses?
This involves borrowing money for a specific time and amount
What is a loan?
This report summarizes sales performance against a budget.
What is a budget sales report?
In this phase, sales decline, often due to market saturation or competition.
What is decline?
Intangible activities provided to consumers, such as haircuts or legal advice.
What are services?
Essential items for survival, like food and shelter, fall under this category.
What are needs?
Three Credit Bureaus
What are Equifax, Experian, Transunion?
This document is filed annually to report income and tax information to the government.
What is a tax return?
Refers to the overall system of production, consumption, and trade in a region.
What is the economy?
The Yummy Brothers attribute their success to "KASH". What does it stand for?
Knowledge
Attitude
Skills
Habits