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Finance in Business
Vocabulary
Term | Definition |
---|---|
Corporate Finance | The area dealing with monetary decisions that corporate enterprises make |
Managerial Finance | The area dealing with monetary decisions that all types of companies make, except corporations |
Personal Finance | Individual taking care of their money |
Dividends | A small payment to each person who owns a stack of a company |
Liability | An obligation, debt, or responsibility owed to someone |
Allocate | To distribute according to plan |
Capacity | The ability of the borrower to repay the loan |
Collateral | An asset pledged to the lender as a security for the money being borrowed |
Conditions | Intended purpose of the loan |
Character | General impression the entrepreneur makes on the potential lender as to their trustworthiness to repay the loan |
Capital | The money the entrepreneur has personally invested in the business |
Interest | The cost of borrowing money |
Principal | The amount of the loan |
Interest rate | A rate which is charged or paid for the use of money |
Asset | The resources from which it expects to gain some future benefits |
Liabilties | Debts owend |
Net worth | How much an entity is worth |
Profit | A financial gain |
Cash flow | Amount of money being transferred into and out a business |
Sales | A quantity or amount sold |