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Business Terminology

1Asset _____Open source of funding for set amount
2Amoritization _____Item of value pledged to a lender
3Capital _____Business value after liabilities subtracted
4Bottom Line _____Assets compared to liabilities
5Collateral _____Item of value owned by you or company
6Current ratio _____Outside investments in a business
7Depreciation _____Amount of money borrowed
8Equity _____Money invested in a business
9Liquidity _____Length of time a loan is paid back
10Overhead _____Net profits
11Pro Forma _____Percentage of a sale paid to a salesman
12P&L Statement _____Ongoing Admin costs that need to be paid
13Venture capital _____A business that buys from manufacturers for resale
14Principal _____Financial report showing income and expenses
15Operating costs _____Total amount of income coming into a business
16Line of Credit _____Decline in value of an asset
17Distributor _____How fast a business can convert assets to cash
18Entrepeneur _____Estimates of future business projections
19Commission _____Cost of doing business day to day
20Gross Income _____A person who starts or runs their own business

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