Entrepreneurship and Innovation Glossary 1st Edition

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Investment & Finance

Account Payable

Account Payable

A short-term debt or obligation in the form of unpaid invoices that the company has to settle with suppliers or service providers when purchasing goods or services on credit. They are recognized as short-term obligations or current liabilities within the balance sheet as accounts payable are typically paid off within a short period that doesn't exceed one year from date of purchase.

Investment & Finance

Accounts Receivable

Accounts Receivable

ِِAmounts representing the company's claims from customers in the form of unpaid invoices resulting from the sale of products or services on credit. Specifically, accounts receivable often involve amounts arising from credit sales, and they are usually documented with invoices specifying the repayment period or a pre-agreed timeframe for settlement. These represent the amounts owed to the company by its customers and are recorded as assets in the general budget, reflecting legal claims in the short term. It's important to note that doubtful debts, those with uncertainties regarding collection, are not classified as assets.

Investment & Finance

Acquisition

Acquisition

The process of purchasing a company or a part of it, either through a stock purchase or asset purchase. Acquisitions can take various forms, often involving a company acquiring another within the same business sector to improve its production or operational processes, expand its product and service offerings, or diversify its investments. Sometimes, a company may be acquired by a competitor to gain control of a larger share of the market or customer base, or to protect itself from other competitors.

Investment & Finance

Angel Investors

Angel Investors

An individual who provides early-stage startups or entrepreneurs with entrepreneurial ventures, usually in exchange for a share of ownership equity or a convertible debt. Angel investors' funds are often a bridge between the self-financing stage of entrepreneurial activities and the stage that allows startups to attract venture capital.

Investment & Finance