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Chp. 10
Term | Definition |
---|---|
Bank Financing | borrowing money with a promise to repay that money and some additional fee, or interest, over a period of time. |
Co-signer | help a borrower to obtain loan terms that they may have otherwise been unable to be approved for. They can also help the borrower to increase the amount of principal that they can receive. |
Creditor | a person or company to whom money is owed. |
Credit History | record of a borrower's responsible repayment of debts. |
Debtor | a person or institution that owes a sum of money. |
Equity | the value of the shares issued by a company. |
Guaranty | a legal agreement in which a person or organization promises to pay back a loan if the person or organization that originally borrowed the money cannot. |
License | A business arrangement in which one company gives another company permission to manufacture its product for a specified payment. |
Net Worth | value of all the non-financial and financial assets owned by an institutional unit or sector minus the value of all its outstanding liabilities. |
Personal Finance Statement | a document or spreadsheet outlining an individual's financial position at a given point in time |
Self-Employment Tax | a tax consisting of Social Security and Medicare taxes primarily for individuals who work for themselves. |
SBA guarantee | program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates. |
Self-financing | having or generating enough income to finance itself. |
Unemployment Tax | Taxes assessed by states to cover unemployment benefits paid to unemployed workers who have been laid off or terminated by a company for specified reasons. |
Working Capital | a financial metric which represents operating liquidity available to a business, organization, or other entity, including governmental entities. |