Business Structure Definitions

What is Equity – ownership interest in a company.

What is an Equity Investor – someone who provides money for a company in exchange for a percentage of ownership in the company.

What is a an Asset – an item that has a financial value that can be used in exchange for something  else of value or sold for cash.

What is Capital – it is the money needed to purchase the goods and services necessary to operate a business.

What is a Liability – financial obligation of an individual or company to pay money for any reason.

What is Collateral – anything of value that is used to secure a loan and that a lender can take if the borrower does not pay according to terms of the loan.

What is a Guarantor – individual, company or organization that provides a guarantee.

What is a Start-Up – newly formed company.

Broker – someone who arranges deal between buyers and sellers for a commission, often a percentage or the value of the transaction, i.e. Veillon Business Consulting, LLC.

Leave a Reply