Name: Trayvilla, Desiree B.

Date: March 13, 2021

Section: BSHM 1

Assignment in ABM 1 – Activity 2

DEFINE THE FOLLOWING:

1. Equity- it is raised by issuing ordinary shares has important advantages as a source of

fund or capital.
2. Debt Financing- is a business can borrow from many sources, and the range of sources to
choose is generally related to the size of business. It is a time-bound activity where the
borrower needs to repay the loan along with interest at the end of the agreed period.
3. Authorize Capital Stocks- is the maximum number of shares that the business owners are
allowed to issue.
4. Issued Stocks- it is the amount of authorized stock subscribed to and paid for in cash,
property or services.
5. Outstanding Stocks- it is the portion of issue stock not reacquired.
6. Pure Discount Loan- this is the simplest form of loan. The debtor receives money today
and repays a single lump sum at some point in the future.
7. Interest Only Loan- this allows the debtor to pay interest each period and to repay the
principal at some point in time.
8. Trade Credit Market- is any place where raw materials or finished inventories may be
purchased on credit.
9. Customer Loan Market- is any place where cash funds can be negotiated.
10. Receivable Sales Market- it is factoring companies buy outright from manufactures their
open accounts receivables.