Financial Concepts 2

What Is Line Of Credit?

• Funds contributed by investors to a business
• A loan that provides the borrower a maximum amount of money he/she can borrow
• Debt owed to someone that is paid in monthly payments
• failure to repay a loan

What Is Default?

• Failure to repay a loan
• Unit price minus cost of goods sold
• The merchandise that a company sells to its customers
• Funds contributed by investors to a business

What Is Credit?

• Costs that do not vary based on the units sold by the enterprise
• The amount a policy holder pays for a insurance policy
• The act of making a business different
• Funds lent to a business with an agreement that the business will repay the lender with interest

What Is Cash Flow?

• Total revenues minus total cost minus one-time expenditures
• Unit price minus goods sold
• The amount that an policyholder pays as part of any claim
• The merchandise that a company sells to its customers

What is Extended Payment Terms?

• The 12 month period a company uses to report financial results
• A legal decision requiring a person or company to pay another person or company
• An option  a supplier might grant a company to pay their bills later than they normally would
• Funds contributed by investors to a business

________ is a credit-worthy individual or business with sufficient liquidity who guarantees to repay a loan in the event that the debtholder cant make required payment

• Guarantor
• Crowdfunding
• Default
• judgment

______  _____ is a loss that an insurance company will reimburse a policyholder  for in the event of a claim

• Deductible 
• Covered loss
• Fixed cost
• Insurance claim

______ _______ the amount a policyholder pays for an insurance policy

• Insurence policyholder
• Installment plan
• Insurance claim
• Insurance premium

______ ______ disinguishing a product or service, attracting customers,generating sales,and serving as the foundation for a thriving business

• Inventory
• Differentiation
• Differentiated offering
• Judgment

______ is the merchandise that a company sells to its customers

• Inventory
• Default
• Credit
• Cash flow