Key Financial Terms - Review 2

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Across
  1. 2. Unit price minus cost of goods sold.
  2. 5. Costs that vary based on the units sold by your enterprise.
  3. 6. Debt obtained from a number of online companies.
  4. 8. Expenditures on equipment the business will use for many years.
  5. 10. The amount that an insurance company makes a policyholder pay as part of any claim.
  6. 12. Money paid by a company to a person who owns stock in that company.
  7. 20. Failure to repay a loan.
  8. 22. A legal decision requiring a person or company to pay another person or company. LineofCredit 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.
  9. 23. Debt from a bank.
  10. 25. An investment vehicle. Different types include stocks, bonds and mutual funds.
  11. 29. A special account where individuals can deposit retirement funds that can grow tax-deferred until they withdraw them after they retire.
  12. 30. Units refer to the “things” the company sells.
  13. 32. is property and the building(s) on it. It can be a piece of land, or it can be a home on that piece of land, or it can be a building.
  14. 35. The amount of money borrowed.
  15. 37. A loss that an insurance company will reimburse a policyholder for in the event of a claim.
  16. 38. Money owed by a company to a supplier.
  17. 43. All people or companies associated with an enterprise.
  18. 44. Unit price minus cost of goods sold.
  19. 45. Offering Distinguishing a product or service "different than anything else," attracting customers, generating sales and serving as the foundation for a thriving business.
  20. 46. A loan; A bond is security that investors buy and sell, that represents a legal obligation from the company issuing the bond that they will repay the funds they received when they issued the bond.
  21. 50. The percentage of a loan a bank or online credit company charges when a small business receives a loan.
  22. 52. Repaying the loan.
  23. 53. A credit-worthy individual or business with sufficient liquidity who guarantees to repay a loan in the event that the debtholder can’t make required payment.
  24. 54. Assets that are not already pledged as a guarantee to repay another loan
  25. 56. Units times price.
  26. 57. Most projections are for a year (or “annual” projections); means three months.
  27. 58. Funds lent to a business with an agreement that the business will repay the lender with interest.
  28. 59. The hard work a small business owner puts into forming, founding and operating his/her business – small business owners typically work very long hours. It is as important as any capital but it’s not a cash investment.
  29. 60. Funds contributed by investors to a business. Investors contribute capital to a business because they expect a significant return on their investment when the business succeeds.
  30. 63. The individual or business that purchases an insurance policy for various types of protection (examples: fire insurance, life insurance, etc.)
  31. 64. A determination of how many units are needed to sell in order to pay for all fixed costs.
  32. 65. An investment security that includes many different stocks purchased and held together.
  33. 66. Something of value.
  34. 67. When a company issues a check or makes a financial commitment for an amount greater than the amount the company has deposited in the bank. Also called "a bounced check."
  35. 68. An individual or company that owns shares in a company.
  36. 69. Equipment, inventory or other goods that are pledged to the bank in the case the company can’t make a loan payment.
  37. 70. Costs that do not vary based on the units sold by enterprise.
  38. 71. Cash or securities that can be immediately turned into cash, which can then repay any loan amount outstanding.
  39. 72. A person or a business with a strong credit score and the financial resources that make it likely they will be able to repay any loan.
  40. 73. Costs that vary somewhat based on the number of units you sell.
  41. 74. The amount an insurance policyholder receives from the insurance company to reimburse the policyholder for a covered loss.
Down
  1. 1. A legal agreement that an assets is part of a guarantee to a lender, when the lender can take possession of the assets and sell it to recover the funds owed by a borrower in the event the borrower is unable to make a required debt payment.
  2. 3. Individuals who make small investments in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on investment.
  3. 4. Ratios a lending company calculates about an individual or a company to determine how likely they are to have the liquidity to repay debt payments that are required in a loan.
  4. 7. An obligation you have to pay someone else money; Also called a debt or a loan.
  5. 9. Companies that conduct business with a company, and that can document how well a company pays its bills to its suppliers.
  6. 11. Money earned when something is sold.
  7. 13. The exact customers and market sector the business intends to serve.
  8. 14. The merchandise that a company sells to its customers.
  9. 15. The 12 month period a company uses to report financial results. A fiscal year can be the same as a calendar year (January through December), any other 12 month period that makes sense.
  10. 16. How a business moves a specific customer to buy their service or offering.
  11. 17. The date a loan (or debt or liability) is repaid in full
  12. 18. A payment that is owed every month.
  13. 19. is an Internet phenomenon, where strangers learn about a business online and then decide whether or not to make an investment. investors are typically “fans” of the owner, but they do expect a return on investment.
  14. 21. The amount a policyholder (either every quarter or year) pays for an insurance policy. .
  15. 24. The right to take possession of collateral until a debt is repaid.
  16. 26. The money a person borrows to buy real estate.
  17. 27. The act of making a business different (and presumably more attractive to target customers) than any competitor.
  18. 28. Debt that does not include a promise by a guarantor to repay the loan in the event the debtholder is unable to make a required payment.
  19. 31. Fixed costs plus variable costs.
  20. 33. Shares of ownership in a company; is a general term of ownership in any company. Supplier A company that provides a good or service to another company.
  21. 34. Debt owed to someone that is paid in monthly payments.
  22. 36. Revenues minus costs.
  23. 39. A company that provides individuals and companies with access to financial markets. CapitalorEquity Funds contributed by investors to a business.
  24. 40. An option a supplier might grant a company to pay their bills later than they normally would.
  25. 41. Costs that make up one unit of what you sell. These can be labor costs as well as material costs.
  26. 42. An investment worth money; a “financial instrument” indicating ownership.
  27. 47. Cash, publicly traded stocks, government bonds or corporate bonds that can be quickly turned into cash.
  28. 48. Money owed by a customer to a company.
  29. 49. A Latin phrase (“for the sake of form”) that in business means a projection of future financial performance.
  30. 51. “Net” means revenues after costs.
  31. 55. Debt that includes a legal obligation by the borrower to repay the debt personally if the business is unable to make its scheduled debt payment.
  32. 61. Total Revenues minus Total Cost minus one-time expenditures (called “capital expenditures”) on equipment you will use for many years.
  33. 62. Other types of debt (or money you owe someone else) other than a mortgage
  34. 67. Costs that a business incurs that are not part of producing the goods or services its sells, but which are required to operate legally and efficiently.