Lecture Notes Flashcards

Vocabulary flashcards for reviewing key concepts from lecture notes.

Loans Working Capital

A loan that is taken to finance a company’s everyday operations.

Ways to Get Working Capital Financing

Traditional Bank Loans, Lines of Credit, Invoice Factoring, Inventory Financing, Supplier Credit

Short term loans

One-time use only and are meant to be paid within a year or less. Can be secured or unsecured.

Invoice Financing

Businesses submit their invoices to advance cash against future invoice payments.

PO Financing

Finances are a specific working capital need, but a purchase order is required in exchange.

Credit line loans

Businesses are given a credit limit and they can take out a loan within that limit at any time.

Equipment loans

This loan is particularly used to purchase equipment.

Loan Interest

The percentage of interest relative to the principal.

Simple interest

An interest charge that borrowers pay lenders for a loan, calculated using the principal only and does not include compounding interest.

Compound interest

Interest that applies not only to the initial principal of an investment or a loan, but also to the accumulated interest from previous periods.

Loan Payment

The amount of money a borrower pays periodically to a lender to repay a loan, including both principal and interest.

Project Management

The planning and organizing of a company’s resources to move a specific task, event, or duty toward completion.

Project Initiation

Define the project’s purpose, scope, and objectives. Identify key stakeholders and create project charter.

Project Planning

Create a project plan, create a work breakdown structure and develop a risk management strategy.

Project Execution

Start working on the project plan, builds workflows, assign tasks to team members and keep everyone in the loop.

Project Monitoring and Controlling

Do regular reviews, monitor progress against KPIs, apply changes when needed.

Project Closure

Complete all project deliverables, discuss failures and successes and document lessons learned.

Financial Forecasting

A prediction of financial results based on adjusted non-GAAP income statements, balance sheets and cash flow statements.

Sales Forecast

Projects your sales at least three fiscal years.

Expenses forecast

Shows expected expenses that businesses incur performing their normal business operations.

Top-down forecast

Takes the market outlook as a whole to project future estimates of the company.

Bottom-up forecast

Takes the historical data of the company and works up to the whole market outlook.

Pro forma

Refers to projections or forecasts, pro forma statements apply to any financial document.

Straight line

Constant growth rate

Moving average

Repeated forecast

Simple linear regression

Compare one independent with one dependent variable

Multiple linear regression

Compare more than one independent variable with one dependent variable.