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.