Business Management Ch. 16

Businesses use this to help with the cost of replacing equipment and buildings.

• retained earnings

• Maintenance contracts
• Depreciation tax credits
• Insurance

Medium term or long term financing used for operating funds or the purchase or improvement of fixed assets.

• Equity financing
• Short term loans
• Venture capital
• term loan

Financing obtained from an investor or investment group that lends large sums of money to promising new or expanding small companies.

• Angel investment
• Crowdfunding
• Private equity
• Venture capital

Form of debt equity similar to an open line of credit.

• Term loan
• Fixed-rate mortgage
• Bridge loan
• business credit card

Personal savings of a current owner invested in the business, money contributed by a new partner, retained earnings are all examples of.

• Venture capital
• Crowdfunding
• Equity capital

• Debt financing

Short-term form of financing obtained by buying goods and services that do not require immediate payment.

• Lease financing
• Long-term loan
• Cash advance
• Trade credit

An unconditional written promise to pay to the lender a certain sum of money at a particular time or on demand is called a _______.

• debt certificate
• promissory note
• credit note
• loan agreement

A figure calculated by dividing the corporation's net worth by the total number of shares outstanding is known as _______.

• dividend yield
• book value

• market value per share
• earnings per share

Stock are listed at this value even though that value is usually not the actual price paid for the stock. This is called _______.

• par value

• equity value
• market value
• face value

Stock that gives holders first claim on corporate dividends if a stock company earns a profit is called _______.

• common stock

• equity stock
• preferred stock

• dividend stock