entrep

These flashcards cover key vocabulary and concepts in financial management as discussed in the lecture notes.

Financial Capital

Essential resources needed by an entrepreneur for operating an enterprise.

Financial Management

Activities concerned with securing money and using it properly; an art and science of managing money.

Factors of Production

Resources used in the process of producing goods and services.

Law of Diminishing Returns

Economic theory stating that as more of a resource is added to a production process, the additional output will eventually decrease.

Supply and Demand

Economic model of price determination in a market, where the price is determined by the balance between product availability and consumer demand.

Seed Capital

Initial funding used to start a business, often lacking for microbusinesses.

Cooperatives

Organizations that offer low-interest loans and financial services to their members.

NGOs and Government Institutions

Entities that provide financial and technical assistance to entrepreneurs.

Promissory Notes

Written pledges by a borrower to pay a specified sum of money at a specified date.

Commercial Paper

Short-term unsecured promissory notes issued by corporations to finance their short-term liabilities.

Budgeting

The process of creating a plan to manage financial resources to meet objectives.

Sources of Funds

The different types of income streams available to finance a business, including sales, owner contributions, and loans.

Common Stock

A type of security representing ownership in a corporation, allowing shareholders the right to vote on corporate matters.

Financial Planning Steps

1. Establishing objectives, 2. Budgeting, 3. Identifying sources of funds.