Match each term with the correct statement below.

a. cash reserve
b. authorized stock
c. dividends
d. float
e. trade agreement
f. floor planning
g. leverage
h. venture capital

1. An agreement that is sometimes used in the automobile industry by which the borrower assigns the title to the inventory to the bank as collateral for a short-term loan
2. Use of long-term debt to raise needed cash
3. Funds that are provided to new, small, or struggling firms in return for partial ownership in the business
4. All the shares of stock that can be sold at any time
5. Distributed earnings
6. Money that has not yet been withdrawn from the company’s checking account even though the checks have been written


1. F) floor planning
2. G) leverage
3. H) venture capital
4. B) authorized stock
5. C) dividends
6. D) float

Business

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