chapter 16

4. value The price at which stock is bought and sold on any given day.
5. Medium or long term financing used for operating funds or the purchase or upgrade of fixed assets
9. Written promise to pay the lender certain sum of money at a perticular time or on demand if certain conditions arise
10. something of value pledged as assurance
11. A dollar value shown on a share of stock, which is an arbitrarily assigned amount that is used for bookkeeping purposes.
13. Refers to the money required to start or expand a business

1. Money that others loan to a business.
2. Ownership that gives holders the right to participate in managing the business through voting privileges and the right to share in any profits through dividends.
3. Business owners’ personal financial contributions to the business.
6. Profits that are not taken out of the business but instead are saved for use by the business.
7. stock Ownership that gives holders preference over the common stockholders when distributing dividends or assets.
8. Capital borrowed for more than a year
12. Contract that lets you borrow an asset for a fee paid monthly