What happens to the value and equity of a fixed asset over time as loans are paid down? Value and equity remain constant Value decreases, equity decreases Value increases, equity decreases Value stays the same, equity increases

Value stays the same, equity increases

How does paying down loans affect a business's equity, and what can equity be used for? Builds equity, can be borrowed against Reduces equity, cannot be borrowed against Has no effect on equity, cannot be borrowed against Builds equity, cannot be borrowed against

Builds equity, can be borrowed against

Business Financing Options: Internal Resources, External Capital and Equity Structures

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Finance - Personal Finance

charlotte1oxhi Created by 10 mon ago

Cards in this deck(41)

What type of funding involves using internal resources such as working capital and fixed assets?

Which type of funding involves raising capital through personal contributions or equity?

What is the term for obtaining funds through borrowing that must be repaid?

What is the term for the difference between current assets and current liabilities, also known as circulating capital?

What is the process of selling accounts receivable for immediate cash called?

What is an asset with long-term use or value, such as land or buildings, that is not converted to cash within one year?

What happens to the value and equity of a fixed asset over time as loans are paid down?

How does paying down loans affect a business's equity, and what can equity be used for?

What is the monetary value of a property minus the amount owed on it called?

What type of financing involves raising money from within the firm through operations or sale of ownership?

What is the term for a company's share of profits distributed to shareholders based on performance?

What is an estimate of a stock's 'true' value based on accurate risk and return data called?

What type of companies are typically associated with private equity?

What is the term for a corporation's first offer to sell shares to the public?

What is any borrowed or loaned capital that must be repaid, often with interest, called?

What is the term for funds raised through various forms of borrowing that must be repaid?

Who are individuals that invest in or financially sponsor new businesses, often seen on shows like 'Shark Tank'?

Who are private individuals that invest their own money in potentially new and/or risky small venture startups?

What is the process of raising small investments from many investors via the internet called?

What type of loans are made to purchase or expand small businesses and are often government-backed?

What are the steps involved in obtaining SBA funding?

What is the 7(A) Loan Guaranty Program designed to do?

What are the 5 C's of Credit?

What is the repayment timeframe for debt funding typically proportional to?

What is the typical timeframe for a business term loan?

What is the typical term length for a mortgage?

What is the term for the date on which a loan must be repaid, often involving a balloon payment?

What is a final loan payment that is much larger than the regular monthly payments called?

What is the term for an interest rate that does not change from month to month?

What is an interest rate that fluctuates over time based on an underlying benchmark called?

What is the rate of interest banks charge on short-term loans to their most credit-worthy customers?

What is the term for the prime rate plus an additional percentage based on the borrower's credit rating?

What is the formula for calculating interest?

What is the face value of a promissory note upon which interest is computed called?

What term describes how much is in your account and how much your investment is currently worth?

What is the annual percentage rate used to compute interest known as?

What is the period of time for which interest is applied, commonly measured in months?

What is the term for a maximum principal a lender is approved for, with a variable interest rate and monthly repayment?

What factors influence the choice between debt or equity financing?

What are some examples of equity financing sources?

What are some examples of debt financing sources?

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Business Financing Options: Internal Resources, External Capital and Equity Structures

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