WorksheetsBusiness Management Ch. 16
Total questions: 22
Worksheet time: 11mins
Businesses use this to help with the cost of replacing equipment and buildings.
retained earnings
Medium term or long term financing used for operating funds or the purchase or improvement of fixed assets.
term loan
Financing obtained from an investor or investment group that lends large sums of money to promising new or expanding small companies.
Venture capital
Form of debt equity similar to an open line of credit.
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.
Equity capital
Short-term form of financing obtained by buying goods and services that do not require immediate payment.
An unconditional written promise to pay to the lender a certain sum of money at a particular time or on demand is called a _______.
A figure calculated by dividing the corporation's net worth by the total number of shares outstanding is known as _______.
book value
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
Stock that gives holders first claim on corporate dividends if a stock company earns a profit is called _______.
common stock
preferred stock
Debt that must be repaid with interest within a year is referred to as _______.
Distribute some profits as dividends and keep some profits as retained earnings is the best policy regarding what corporations should do with their profits. This is known as _______.
best policy regarding what corporations should do with their profits
Another name for an investment bank is _______.
underwriter
Organization that helps a business raise large sums of capital through the sales of stocks and bonds.
Something of value pledged as assurance of the fulfillment of an obligation.
security
Price at which stock is actually bought and sold.
market value
Business owners' personal contributions to the business.
equity capital
Who determines the number of shares of stock to be issued by a corporation?
Contract that allows the use of an asset for a fee paid on a schedule, such as monthly.
Right granted by a corporation that allows current stockholders to buy additional shares.
An entrepreneur's personal assets have greater protection with this form of business ownership.
Corporation
Profits that the owners do not take out of the business but instead save for use by the business are called what?
Gross profit
Retained earnings
