| A | B |
|---|
| Business owners' personal contributions to the business | equity capital |
| figure calculated by dividing the coroporation's net worth by the total numner of shares outstanding | book value |
| price at which stock is actually bought and sold | market value |
| Right granted by a corporation that allows current stockholders to buy additional shares when issued at a fixed price for a specific period of time | stock option |
| short-term form of financing obtained by buying goods and services that do not require immediate payment | trade credit |
| organization that helps a business raise larges sums of capital through the sales of stocks and bonds | investment bank |
| contract that allows the use of an asset for a fee paid on a schedule, such as monthly | lease |
| debt that must be repaid with interest within a year | short-term debt |
| financing obtained from an investor or investment group that lends large sums of money to promising new or expanding small companies | venture capital |
| profits that the owners do not take out of the business but instead save for use by the business | retained earnings |
| medium term or long term financing used for operating funds or the purchase or improvement of fixed assets | term loan |
| personal savings of a current owner invested in the business,money contributed by a new partner,retained earnings are all examples of | equity capital |
| stock that gives holders first claim on corporate dividends if a stock company earns a profit | preferred stock |
| an entrepreneur's personal assets have greater protection with this form of busiess ownership | corporation |
| determines the number of shares of stock to be issued by a corporation | the board of directors |
| distribute some profits as dividends and keep some profits as retained earnings | best policy regarding what corporations should do with their profits |
| form of debt equity similar to an open line of credit | business credit card |
| Another name for an investment bank | underwriter |
| an unconditional written promise to pay to the lender a certain sum of money at a particular time or on demand | promissory note |
| something of value pledged as assurance of the fulfillment of an obligation | security |
| stock are listed at this value even though that value is usually not the actual price paid for the stock | par value |
| businesses use this to help with the cost of replacing equipment and buildings | retained earnings |
