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Ag business unit 5
Term | Definition |
---|---|
Amortize | to pay off a loan by gradual and periodic payment of principal and interest |
Annual Percentage Rate (APR) | the interest rate a borrower will pay on a loan including loan fees and other costs expressed as a percentage of the amount borrowed |
Asset | anything of monetary value that is owned by an individual |
Credit | a promise of future payment in money or in kind in exchange for present money, goods, or services |
Financial Capital | money used by businesses to buy what they need in producing products and services; purchasing power |
Interest | the cost of borrowed money; a sum paid for the use of capital; often calculated as a percentage of the loan amount (principal) |
Labor | a factor in production; manual or mental effort for wages, salaries, or other compensation |
Land | a factor in production; an economic good supplied by nature |
Loan | money borrowed from a lender (such as a commercial bank) and repaid with interest |
Natural Resource | wealth supplied by nature, including soil, air, water, minerals, fossil fuel, wildlife, and climate |
Principal | accumulated capital; sum of money that accumulates interest; proceeds of a loan |
Productive Resource | any item of value that is used to produce goods |
Resource | any materials or advantages to which an entrepreneur has access |