key financial terms: unit 2

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Compléter key financial terms: unit 2Version en ligne complete the text par WE ENGLISH 1 income borrow working equities credit balance capital shares debt capital Investors expenses retained sheet net on stock owing loss account earnings debt bonds dividend liability retain revenue income debt When starting a business , the first step is often to secure enough , which refers to the money used to set up or invest in a company . Entrepreneurs may funds from a bank or other financial institutions , typically through a loan , which they will need to repay with interest over time . Another option for raising capital is issuing or , which represent partial ownership in the company . Investors who purchase these become shareholders ( or stockholders ) and , in exchange , they expect to receive a , a portion of the company's profits . Once the business is set up , effective financial management becomes crucial . One of the key financial indicators that businesses monitor is , which refers to the difference between current assets and liabilities . This ensures the company has enough resources to cover day - to - day expenses . Another important aspect of managing a company ? s finances is tracking its profit and ( or statement ) , which records generated from sales and incurred , such as salaries , rent , and utilities . The difference between revenue and expenses is the , which shows the company ? s profitability . Some businesses may choose to their profits rather than distribute them as dividends . These can be reinvested into the company for future growth or to pay off . Companies must also prepare financial statements , including the , which provides a snapshot of the company ? s financial position by listing its assets , liabilities , and equity at a given time . and lenders are interested in these documents because they provide valuable information about a company ? s ability to generate returns . Investors , in particular , aim to invest their money in companies with strong financials , while lenders look at the company's and levels to determine its creditworthiness . If the company ? s liabilities exceed its assets , it may find itself more than it can afford to pay back . Finally , companies often issue to raise funds , promising to repay the bondholders with interest . Bonds are different from stock since they represent a the company must pay back , rather than equity ownership . For businesses that purchase goods , proper management of retained earnings and working capital is essential to avoid falling into financial trouble .

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key financial terms: unit 2Version en ligne

complete the text

income borrow working equities credit balance capital shares debt capital Investors expenses retained sheet net on stock owing loss account earnings debt bonds dividend liability retain revenue income debt

When starting a business , the first step is often to secure enough , which refers to the money used to set up or invest in a company . Entrepreneurs may funds from a bank or other financial institutions , typically through a loan , which they will need to repay with interest over time . Another option for raising capital is issuing or , which represent partial ownership in the company . Investors who purchase these become shareholders ( or stockholders ) and , in exchange , they expect to receive a , a portion of the company's profits .

Once the business is set up , effective financial management becomes crucial . One of the key financial indicators that businesses monitor is , which refers to the difference between current assets and liabilities . This ensures the company has enough resources to cover day - to - day expenses . Another important aspect of managing a company ? s finances is tracking its profit and ( or statement ) , which records generated from sales and incurred , such as salaries , rent , and utilities . The difference between revenue and expenses is the , which shows the company ? s profitability .

Some businesses may choose to their profits rather than distribute them as dividends . These can be reinvested into the company for future growth or to pay off . Companies must also prepare financial statements , including the , which provides a snapshot of the company ? s financial position by listing its assets , liabilities , and equity at a given time .

and lenders are interested in these documents because they provide valuable information about a company ? s ability to generate returns . Investors , in particular , aim to invest their money in companies with strong financials , while lenders look at the company's and levels to determine its creditworthiness . If the company ? s liabilities exceed its assets , it may find itself more than it can afford to pay back .

Finally , companies often issue to raise funds , promising to repay the bondholders with interest . Bonds are different from stock since they represent a the company must pay back , rather than equity ownership . For businesses that purchase goods , proper management of retained earnings and working capital is essential to avoid falling into financial trouble .

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key financial terms: unit 2

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key financial terms: unit 2Version en ligne

par WE ENGLISH

income borrow working equities credit balance capital shares debt capital Investors expenses retained sheet net on stock owing loss account earnings debt bonds dividend liability retain revenue income debt

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