| A | B |
|---|
| shares | book value of a share of stock is found by dividing the corporation’s net worth by the total number of THESE |
| bonds | Long-term debt capital is obtained by issuing THESE |
| Retained earnings | profits that owners do not take out of the business |
| corporation | In THIS type of business ownership additional funds can be obtained through the sale of stock. |
| capital | Money that owners borrow for their business using their own homes as security for the loan is owner |
| reinvested | Earnings_____________ in the business to replace equipment, add new facilities, or serve as financial protection are retained earnings |
| common | When starting a business, it is usually desirable to issue only THIS type of stock. |
| interest rates | When deciding how to get capital, companies should consider the influence of capital contributors, the cost of capital & THESE |
| $20 | If the ABC Corporation's net worth is $40,000,000 and there are 2,000,000 shares of stock outstanding, the book value of each share is |
| sole proprietorship | If THIS type of business fails, the owner's assets including personal assets invested in the business, Personal assets not invested in the business and mortgaged personal property may ALL be lost |
| par value | The dollar value printed on the stock certificate |
| debt | Businesses in financial difficulty often have trouble getting ________capital |
| convertible bond | A bond that allows a bondholder to exchange bonds for a prescribed number of shares of common stock |
| security | Something of value pledged as assurance of the fulfillment of an obligation. |
| line of credit | The authorization to borrow up to a maximum amount for a specified period of time |
| crowdfunding | A strategy for funding a business idea with small amounts of money from many people |
| investment bank | An organization that helps businesses raise capital through the sale of stocks and bonds. |
| sales finance company | Firm that provides capital to a business based on installment sales contracts. |
| debenture | A bond that is not secured by assets but based upon the faith and credit of the corporation that issues it. |
| mortgage bond | A bond secured by specific long-term asset of the issuer. |
| factor | A firm that specializes in lending money to businesses based on the business’s accounts receivable |
| ESOP | A plan that allows employees to become owners of the company they work for through the purchase of stock. |
| debt capital | anks and other types of lending institutions usually will not loan money to a business unless owner capital exceeds |
| one year | Short-term debt must be repaid to the lender with interest within |
| faith and credit | Bonds that are based upon the _________ _____ _________ of the corporation that issues them are debentures |
| venture capitalist | These companies may get a percentage of ownership in the company in return for their investment. |
| short-term | The original cost of obtaining long-term capital is usually higher than that of THIS capital |
| $450 | If a person owns 100 shares of 5 percent preferred stock that has a face value of $90 a share.No dividends were paid out last year. If profits are large enough, what would the dividend pay out be this year? |
| term loan | A common method used to purchase expensive equipment |
| voting | Preferred stock holders typically do not have THESE privileges in a business. |
