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Finance
Term | Definition |
---|---|
functions of business | the five main functions that business performs |
stockholder | one who owns shares of stock in a corporation or mutual fund |
ethics | a system of moral principles |
credit | a contractual agreement in which a borrower receives something of value now and agrees to repay the lender at some later time |
interest | the fee charged by a lender to a borrower for the use of borrowed money |
profit | the positive gain from an investment or business operation after subtracting for all expenses opposite of loss |
asset | anything of monetary value that you own, such as cash, bank accounts, real estate, or stocks |
liability | a debt that you owe to others, such as credit card debt, school loans, car payments, or taxes |
net worth | the difference between your assets and your liabilities. To find a business's net worth, subtract its debts from its assets |
personal financial statement | one way to determine whether you and your business are good credit risks |