The belief that 80 percent of a company's business comes from 20 percent of its customers. The value of stock. A method of raising money for a business through the sale of stock in exchange for partial ownership of the business. An amount of tax calculated and prepaid on a quarterly basis. A method of financing whereby a lender purchases the accounts receivables of a business at a discount to their face value.
Examples are rent, utilities, interest, and insurance premiums.
A method of financing inventory whereby the lender bases the loan on the credit of the vendor as well as the credit of the business applying for the loan. A business that is licensed by a larger company and operates under the regulations of that parent company. McDonald's is an example of a franchise. A person who works independently without commitment to any one company. A record that contains all the company s controlling accounts arranged in the order of the chart of accounts.