BUSN 1101 Study Guide - Initial Public Offering

• School: Northeastern University
• Department: Business Administration
• Course: BUSN 1101
• Professor: William Shimer

Document Summary

Amortization: schedule by which you"ll reduce the balance of your debt e. g. periodic payments or entire amount. Security: form of collateral, such as company or personal assets. If the borrower fails to pay the loan when it"s due, the bank can take possession of these assets. Cash flow management: monitoring cash inflows and outflows to ensure that your company has sufficient but not excessive cash on hand. When you see a shortage you go to the bank for additional funds and when you see idle cash it should be invested and earn a return for the company. Managing accounts payable: records of cash that you owe to the suppliers, this builds up when you buy supplies with trade credit. Make sure to pay your bills on time but no ahead of time. Budgeting: preliminary financial plan for a given time period, generally a year.