Isis Díaz
Clave # 4
5to PC
Cash Flow: The money a
company receives
minus the money it
apenda during a
certain period. The cash flow of our company is decreasing.
Equity: Part of the ownership
of a company in the
form of stocks or
shares.
We have to keep the company equity.
Mutual Funds: Funds Operated by
investment companies
that invest people´s
money in various assets.
The mutual Funds have to be invested in the smart way.
Pension Funds:
Funds that invest money
that will be paid to
people after they retire
from work.
We have to gave pension funds to a lot of peole.
Principal: The amount of
capital making up a
bond or other loan.
What is the principal for the investment.
Maturity: The length of time for
wich a bond is issued.
At the end of the reunion we agree the maturityf the bond will be of 6 years.
Cupon:
The amount of
interest that a bond
pays.
The cupon will inform about the interest that a bnd pays.
Bank-rupt: Unable to pay debts.
We start at the top and we end in bank-rupt.
Creditors: People or institutons
to whom money is
owed.
We have only two creditors since 2007
Dividends: Payments by
companies to their
shareholders.
Market Makers: Businesses that buy and
sell securities.
Bid: The price at wich a
buyer is prepared to
buy a security at a
particular time.
Other Price: The price at wich a
seller is prepared to
sell a security at a
particular time.
Quield: The rate of income
an investor receives
from security.
Retail Outlets: Places where goods
are sold.
Diversify: To become more
varied or different.
Listed Companies:
Public companies
whose stocks are
traded on a stock
exchange.
Controlling Interest: A suficient number of
stocks in a company
to be able to decide
whatto do.
Conglomerates: Companies that own
or control several
smaller businesses
selling very different
products or services.
Fees: Amounts of money
paid for services.
Market Capitalization: The total value of a company
on the stock exchange,
Synergy: The combined power
or value of a group of
things working together
wich is greater than the
total power or value
achieved when each is
working separetly.
Subsidiaries: Companies that are
owned by a larger
parent company.
Pension Funds: A sum of money
reserved to pay a
company´s retired
employees.
Bonds
• A bond is a promise
to repay the principal along with
interest (coupons) on a
specified date (maturity). Some
bonds do not pay interest, but
all bonds require a repayment
of principal. When
an investor buys a bond, he/she
becomes a creditor of the issuer.
Stocks and Shares
• "stock" is a general term used to describe the ownership certificates of any company, in general, and "shares" refers to a the ownership certificates of a particular company.
Takeovers
• When an acquiring company makes
a bid for a target company. If the
takeover goes through, the acquiring
company becomes responsible for all
of the target company’s operations,
holdings and debt. When the target is
a publicly traded company, the
acquiring company will make an offer
for all of the target’s outstanding
shares.
Adequate: Sufficient,
enough.
Confidential:
Secret, Private
Discreet: Showing good
judgment, prudent
Libel: Unjustly unfavorable
impression of a
person or thing.
Outstanding: Unpaid
Rebate:
Discount, return of
part of payment.
Accessible: Understandable
Agenda: List, Schedule.
Dispense: To give out.
Motion: Proposal.
Pertinent: Relevant
preside: To act as chairperson,
t lead.
Resolution: Statement of
a decision or
opinion.
Transpire:
To take place,
to happen
Credit Letters
• Credit involves purchasing and receiving
goods without immediate payment.
Therefore, credit transactions are common
and essential in business.
• There are five types of credit
correspondence:
– Applications for credit
– Inquiries about creditworthiness
– Responses about creditworthiness
– Letters granting credit
– Letters refusing credit
Applications
• Consumer applications for charge accounts, with businesses such as department stores or gasoline companies, are usually made by filling out and application form.
YOTUKI, INC. 76 North Patway Lake Bluff, Illinois 60089 July 23, 2014 Industrial Plastic Corporation 78 Akron Avenue Miami, Florida 6985 Dear Sir or Madam: Our company have been in the industry of making children toys, for almost 10 years. We want to innovate by creating a new baby doll, looking for new marketing opportunities. We would like to order 25 pounds of linen plastic item No. 223-A; additionally, we want to apply for a credit line with your company. You may also check our credit standing with the following companies: City Bank, 87 Lou Avenue, Miami Florida 9879 Your Toys, 98 Lux Lake, Illinois 987 Beauty Doll, 91 Paul Street, Michigan 9118 Please contact me if you need any additional information and to inform me about your final decision. Truly yours, Theo Horan President of Yotuki, Inc. Jlo P.
Credit Inquiries
• Credit inquiries, are records created
when someone looks at your credit
information. Credit inquiries are either
"hard inquiries," as when a
business views your credit report in
connection with an application for
credit, or "soft inquiries" when your
credit is checked for most other
reasons.
Credit Responses
• Companies that receive large numbers of credit inquiries often use in-house form for responding.
• This is a way by which they can control the information given out and, especially, limit the information to verifiable facts: – The amounts owed and presently
duce
– Maximum credit allowed
– The dates of the accounts opening and last sale
– The degree of promptness in payment.
Credit Granting Letters
• When all the references are favorable, a letter is sent grating
credit to the customer.
• Whether for a consumer charge account or a dealer open
account, the acceptance letter:
– Notifies the customer of the credit
approval
– Welcomes the customer and
expresses appreciation
– Explains the credit terms and privileges
– Establishes goodwill and encourage
further sales.
Credit Refusing Letter
• Credit must be denied, a letter refusing credit must give the customer a reason; however, in an effort to be tactful and protect reference, the reason may be expressed vaguely.
Collection Letters
• Seller or exporter's order that
accompanies a demand draft or time
draft (with shipping and
other collection documents)
and instructs the collecting
and remitting
banks on interest charges, demurrage
charges, case of need, protest, etc.
Also called collection order. Not to be
confused with letter of collection.
Memorandum
• Memos are written messages
between members of the same
organization, therefore they
may be informal and concise, at
the same time, the must be
courteous and complete.
Minutes • Are a written record of everything
that transpires at a meeting.
– The name of organization
– The place, date, and time of the meeting.
– Whether the meeting is regular
– The name of the person presiding
– A record of attendance
PARTIAL
Reflective Essay During this unit I had the chance to learn about so
many things and i know that in the future i will use
them.
In commercial we start with the credit and
collection letters that most of them are abut
knowing the information of a client that is asking for
a credit and withthat information the copany decides if they will or will not give the credit this is
really interesting because if we need a credit we
need a god credit record and in marketing we
learn about bonds that show why succesful
businesses chose bonds what were the benefits
and all that.
I can say that i learned a lot during this unit and by
knowing all these it encorages me to have my own
business and maybe i will be succesful someday.