BF LESSON 1&2

An entity in which the skills, energy, and enterprise of owners and partners are linked with money, its sources and investment, and its success is measured by wealth, or profit the business gets.

• form of non cash assets of a corporation.

• takes the form of loans arranged privately between two parties where the lender is usually a bank or other financial intermediary.

1. is the use of borrowed capital.

is the cost of borrowed capital.

these stocks can be reacquired in two ways: one is by gift from stockholders; and the other way is buying back some of the company’s issued stock

is any place where raw materials or finished inventories may be purchased on credit.

takes the form of securities such as notes, bonds, or debentures which are issued to investors and can be traded in a secondary market

is any place where cash funds can be negotiated.

1. is the maximum number of shares that the business owners are allowed to issue.