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Week 2 Terms/Definitions

by: Janell Notetaker

Week 2 Terms/Definitions ENTR:37065

Janell Notetaker
GPA 3.0

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About this Document

These are definitions from Week 2
Entrepreneurial Finance
Denise Easterling
Study Guide
definitions, week, two, study, guide, Note, sheet, entre, finance
50 ?




Popular in Entrepreneurial Finance

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This 2 page Study Guide was uploaded by Janell Notetaker on Tuesday September 13, 2016. The Study Guide belongs to ENTR:37065 at Kent State University taught by Denise Easterling in Fall 2016. Since its upload, it has received 30 views. For similar materials see Entrepreneurial Finance in Marketing and Entrepren at Kent State University.


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Date Created: 09/13/16
WEEK 2 TERMS FOR ENTREPRENEURIAL FINANCE QUIZ 1 demand for borrowed funds- is all of the money that is demanded in our economy at a given price (interest rates). discretionary income- income we can make choices about. supply of money saved is primarily the total money that is placed in checking accounts, savings, and money market mutual funds. Principal interest rate- are the rates that banks charge their best, most credit- worthy customers. interest- the fee charged by a lender to a borrower for the use of borrowed money, usually expressed as a percentage rate of the principal. Workers compensation- is a form of insurance providing wage replacement and medical benefits to employees injured in the course of employment. Dividend- is an after-tax payment made by a C Corporation to a shareholder. Distribution- is a type of payment made to a partner in a partnership, a shareholder in an S corporation or a member- of an LLC. Finance- a branch of economics concerned with resource allocation as well as resource management, acquisition and investment. Simply, finance deals with matters related to money and the markets. Entrepreneurial finance- The study of resource acquisition, resource allocation, financial planning and financial management, asset and business valuation, contingency planning and harvest strategy in the text of new business venture and the entrepreneur’s personal financial goals. The Federal Reserve is the central bank of the United States and it control the monetary policy of the United States Monetary Policy is the governmental action taken by the Fed to charge the supply of money so as to expand or contract economic activity Economic growth- so businesses can grow and prosper Price Stability- so consumers maintain their faith in the economic system Full Employment- to ensure that every American who wants to work can find a job discount rate- is the rate of interest the Fed charges banks to borrow money from the Fed inflation- prices for goods increasing, we have too many dollars chasing too few goods. WEEK 2 TERMS FOR ENTREPRENEURIAL FINANCE QUIZ 1 Deflation- prices for goods decreasing, we have too few dollars chasing too many goods. Risk- the probability that the actual return on an investment will be less than the desired return


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