+Useful Vocabulary

1 Assets:
1 Resources controlled by an enterprise as a result of past events and from which future economic benefits to the enterprise are expected to flow.
2 Everything belonging to a company or a person Ex: A company with 9 billions in assets
3 Something or someone that is useful because it or he help us succeed or deal with a problem
Ex: A sense of houmor is a great asset in this business I think that Rachel would be a asset for the department

2 Liabilities:
1 Present obligations of an enterprise arising from past events, the settlement of which is expected to result in an outflow of resources embodying economic benefits;
2 Creditor’ claims of the resources of a company
3 The amount of debt that must be paid
4 Legal responsibility for something, especially for paying money that is owed, or for damage or injury
Ex : tenants have legal liability for any damage they cause The court ruled that there was no liability to pay any refund
5 Someone or something that is likely to cause problem for someone
Ex : a kid like Tom would be a liability in any classroom

3 Leverage
1 In the context of corporate finance, leverage refers to the use of fixed costs within a company’s cost structure. Fixed costs that are operating costs (such as depreciation or rent) create operating leverage. Fixed costs that are financial costs (such as interest expense) create financial leverage
2 V:To make money available to someone in order to invest or to buy something such as a company
Ex: the use of public funds to leverage private investment

4 Leverage Buy Out: A transaction whereby the target company management team converts the target to a privately held company by using heavy borrowing to finance the purchase of the company’s outstanding shares.

5 To lever: to move something with a lever (a lever is a stick or handle on a machine or piece of equipment that you move to operate it.

6 Fulcrum: Plural: fulcrums or fulcra