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Related Flashcards
Related Topics
Cards In This Set
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Crowdfunding
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Peer-to-peer, internet-based lending or investing. Also includes ‘rewards’ platforms.
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Collateral
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The assets pledged against the possible default on a loan.
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Lease
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A form of finance that allows the firm to use the asset without owning it by making regular payments.
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Hire purchase
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A form of finance that allows the firm to purchase the asset over a period of time by making regular payments with the asset acting as security.
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Factoring (or invoice discounting)
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A form of finance where sales invoices act as security.
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Breakeven point
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Fixed costs divided by contribution margin, expressed in $/£ of turnover.
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Agency theory
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Identifies the mechanisms and costs that the principal has to put in place to ensure that the agent conforms to a legal agreement.
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Business angels
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Private equity investors.
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Venture capital
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Equity capital invested in the business by individuals or institutions other than the founders at an early stage in its development.
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Management buy-ins
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External managers buying a firm and normally replacing the management.
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Management buy-outs
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The management of a firm buying it.
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Exit route (liquidity event)
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The sale of an equity investment.
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Liquidity event (Exit route)
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The sale of an equity investment.
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Trade sale
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Sale of the business to another company, probably in the same industry.
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FinTech
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The financial technology industry. This includes crowdfunding platforms and other internet platforms that deliver financial services.
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