The following technical terms appear for the first time in this chapter. Check that you know the meaning of each. (If you can’t find them again in the text, there is a glossary at the end of the book.)

• Agency

• General purpose financial statements • Annual report

• HM Revenue and Customs • broker

• Limited liability company • Business entity

• Liquidity • Capital

• Loan covenants • Cash flow projections

• Management accounting • Conceptual framework

• Partnership • Directors

• Portfolio of shares • Entity

• Registrar of Companies • Equities analyst

• Share capital •External reporting

• Shareholders • Financial accounting

• Sole trader • Financial information

• Specific purpose financial statements • Financial reporting standards

• Stakeholders • Financial statements

• Stewardship • Fund manager

• Unsecured creditors