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15 Cards in this Set
- Front
- Back
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What is the goal of the course ? |
To create wealth using leverage while properly evaluating risk |
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What is leverage |
When a small amount of money creates more money |
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What is interest |
Money paid regularly at a particular rate for the use of money lent. |
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Inflation |
The gradual increase in the wholesale, and retail prices of products and services, usually resulting from an increase in the amount of money in circulation in an economy. |
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Deflation |
Reduction of the general level of prices in an economy |
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The fed |
Sets monetary policies, they have 12 governors |
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Feds job |
Keep inflation and unemployment under control |
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GDP |
Gross domestic product- total sum of all goods and services produced in U.S fiscal year |
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Least risky assets |
T-bills, t-bonds, CD's, money market, pass book savings |
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More risky assets |
Bonds, stocks, collectibles (art, real estate, small business, venture caputal) |
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6 C ' s of bank borrowing |
1. Collateral - property 2. Cash flow - 5 year projected income statement 3. Credit history - FI CO 4. Capacity - net profit 5. Commitment- down payment (20-30%) 6. Condition- economic ( discretionary income) |
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Legal structures |
1. Sole proprietorship- privately owned, you use your own so 2. Partnership 3. Corporations- "c" or "s" c Corp pay double taxes s don't C lose on corporation s lose on you 4. LL- one owner and small owners, limited liability 5. Non profit- a foundation 6. Cooperative - credit union |
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8 steps sales call |
1. Be prepared 2. Greeting 3. Show the product or service 4. Listen to the customer 5. Deal with objections (turn negatives into positives) 6. Close the sale 7. Follow up - build a relationship 8. Ask for references- word of mouth |
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Consumer decision buying process |
1. There is a problem 2. Information search 3. Alternative evaluation 4. Choice 5. Post purchase evaluation |
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Name some strategies needed to start a small business |
1. Get educated 2. Get experience 3. Set yourself up capital 4. Learn how to evaluate risk 5. Small business loan 6. Business plan 7. Invest in development 8. Use least amount of dollar from revenue (Roi) 9. Hire a good accountant 10. Key employees ( contract employment agree 11. Full understanding of leverage 12. Set up corporation |
