25.01 Vocab BM Finance Unit

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Across
  1. 2. allows a person/firm to continue withdrawing money from a bank account that has no funds in it; an extension of credit from a bank/organization.
  2. 5. the amount of time it takes to recover the initial cost for an investment.
  3. 6. selling a firm’s unpaid invoices to another firm.
  4. 10. the expected amount of profit that a company should gain based on an investment; expressed as a percentage of initial capital cost. It is calculated with the following formula:((Total Returns – capital costs) ÷ years of use/ capital cost) x 100
  5. 12. amount of income per unit, generated from a product that contributes to the payment of the fixed costs.
  6. 16. production costs that remain fixed up to a certain volume, after which it become variable (ex: wage for salesperson)
  7. 22. contract where an owner of an asset grants a second party the right to its exclusive possession for a period of time, in return for lease payments.
  8. 23. allows a customer to buy a product/service and then pay later.
  9. 24. Profits of a company that are either reinvested or kept as a reserve, and not distributed to shareholders.
  10. 26. the money that shareholders invest in order to start or expand a business.
Down
  1. 1. costs that can be accurately traced to cost objects (ex: wages, raw materials)
  2. 3. money that a company receives from selling its goods and services.
  3. 4. the difference between a firm’s sales, in other words its current or anticipated output level, and what it must sell in order to reach the break-even point (TR=TC).
  4. 7. costs which can’t be accurately attributed to cost objects. (ex: insurance, security)
  5. 8. wealthy individuals who seek out potential investments to make in a firm, and in return receive ownership or equity stake in the firm.
  6. 9. money that is spent by a business on buying fixed assets (ex: land, buildings)
  7. 11. an investor who provides capital to a firm for starting or small companies for expanding, in hope of getting large returns.
  8. 13. money that is spent by a business on activities that are directly related to market sales; expenses incurred in order to maintain assets that help generate money for them.
  9. 14. the quantity that a firm has to produce in order for its total costs to equal its total revenue.
  10. 15. amount left over after variable costs are deducted from the sales revenue; used to pay for indirect fixed costs and contributes to the net income.
  11. 16. certain amount of money that the government grants to a firm in order to keep prices low.
  12. 17. money that a business borrows from a bank or an organization, and must be repaid within a specific time period and with interest.
  13. 18. the method in which a company earns/collects its money.
  14. 19. a valuable item of property to a person/company that is beneficial and generates income.
  15. 20. costs that are independent of the sales of a product, and has to be paid (ex: rent).
  16. 21. costs that are directly related to how much is sold, so if sales increase(ex: raw materials).
  17. 25. sum of money given to a firm from the government or an organization, for a certain purpose.