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Finance in Marketing Vocabulary

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Term
Definition
Corporate finance   the area dealing with monetary decisions that corporate enterprises make.  
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Managerial finance   the area dealing with monetary decisions that all types of companies make, except corporations.  
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Personal finance   individual taking care of their money.  
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Dividends   a small payment to each person who owns a stock of a company.  
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Liability   an obligation, debt or responsibility owed to someone.  
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Allocate   to distribute according to a plan.  
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Capacity   the ability of the borrower to repay the loan.  
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Capital   the money the entrepreneur has personally invested in the business.  
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Collateral   an asset pledged to the lender as a security for the money being borrowed.  
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Conditions   intended purpose of the loan  
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Character   general impression the entrepreneur makes on the potential lender as to their trustworthiness to repay the loan.  
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Interest   the cost of borrowing money.  
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Principal   the amount of the loan. Interest rate – a rate which is charged or paid for the use of money.  
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Assets   the resources from which it expects to gain some future benefit.  
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Liabilities   depts owed  
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Net worth   How much an entity is worth  
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Profit   a financial gain.  
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Cash flow   amount of money being transferred into and out of a business.  
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Sales   a quantity or amount sold.  
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Created by: onunez3227
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