BM16V

Refers to the money required to start or expand a business.

• Capital

• Equity capital

• Retained earnings

• Debt capital

A business owners’ personal financial contributions to the business.

• Capital

• Equity capital

• Retained earnings

• Debt capital

The profits that are not taken out of the business but instead are saved for future use by the business.

• Capital

• Equity capital

• Retained earnings

• Debt capital

Money that others loan to a business.

• Capital

• Equity capital

• Retained earnings

• Debt capital

Ownership that gives holders the right to participate in managing the business through voting privileges plus the right to share in any profits through dividends.

• Common stock

• Par value

• Market value

• Preferred stock

• Book value

A dollar value shown on a share of stock, which is an arbitrarily assigned amount that is used for bookkeeping purposes.

• Common stock

• Par value

• Market value

• Preferred stock

• Book value

The price at which stock is actually bought and sold.

• Common stock

• Par value

• Market value

• Preferred stock

• Book value

Stock that gives holders first claim on corporate dividends if a company earns a profit.

• Common stock

• Par value

• Market value

• Preferred stock

• Book value

The value of a share of stock that is calculated by dividing the corporation’s net worth (assets minus liabilities) by the total number of shares outstanding.

• Common stock

• Par value

• Market value

• Preferred stock

• Book value

A loan that must be repaid with interest within a year.

• Short-term debt

• Line of credit

• Promissory note

• Security