Finacial terms - Demcenco

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Financial manag – all those activities that are concerned with obtaining money by using it effectively Short-term financing – money that will be used for a period of one year or less and then repaid Cash flow – the movement of money into and out of an organization Long term financing - money that will be used for longer that one year Financial plan – a plan for obtaining and using the money that is needed to implement an organization’s goal Budget – a statement that projects income and/or expenditures overa specified future period of time. Zero-base budget – a budgeting approach in which every expense must be justified in every budget Equity capital – money received from the sale of shares of ownership in the business Debt capital – money obtained through loans of various types Unsecured financing – financing that is not backed by collateral Trade credit – a payment delay that a supplier grants to its customers Promissory note – a written pledge by a borrower to pay a certain sum of money to a creditor at a specified future date Prime interest rate – the lowest rate charged by a bank for a short term loan Revolving credit agreement – a guaranteed line of credit Commercial paper – short-term promissory notes issued by large corporations Commercial draft – a written order requiring a customer to pay a specified sum of money to a supplier for goods or services