MEC Key Financial Concepts 1

Money owed by a company to a supplier.

• account receivable

• account payable

• breakeven anaylysis

• cost of goods sold

Costs that make up one unit of what you sell.

• cost of goods sold

• Capital

• bond

• account receivable

Individuals who make small investments and do not expect an immediate or large return. (usually friends or family)

• angel investors

• crowdfunding

• credit-worthy

• shareholder

Funds contributed by investors to a business. And expect to get a significant return on their investment when the company succeeds.

• crowdfunding

• credit

• angel investors

• equity/capital

Funds lent to a business with an agreement that the business will repay the lender with interest.

• credit

• default

• capital/equity

• extended payment terms

Failure to repay a loan

• debt

• deductible

• default

• covered loss

A loss that an insurance company will reimburse a policyholder for in the event of a claim.

• deductible

• covered loss

• extended payment terms

• contribution margin

Money owed by a customer to a company

• bank loan

• account payable

• credit

• account receivable

A loan. Security that investors buy and sell, that is a legal obligation from company that the funds will be repaid.

• bond

• bank loan

• online loan

• contribution margin

A company that provides individuals and companies with access to financial markets.

• crowdfunding

• brokerage

• capital

• investors