Introduction To Finance

1) What is LIBOR?

LIBOR is the interest rate that banks charge each other for loans. LIBOR is an acronym for London InterBank Offered Rate. This rate is that which is charged by London banks, and is then published and used as the benchmark for bank rates all over the world.

2) What is the Prime Rate?

The prime interest rate is what banks charge their best customers. Also known as the prime lending rate, it is based on the Fed Funds rate. For this reason, it is usually the best (= the lowest) loan rate available to non-banks.

3) What does an Income Statement tell you about a company?

An income statement is a document (issued monthly and/or annually) reporting on the earnings of a company by stating all relevant income and all expenses that have been incurred to generate that income. It is also referred to as a profit and loss statement.
The income statement illustrates how much a company makes or loses during a certain period of time by presenting the net result, which is either a profit or a loss. The net result is calculated by subtracting cost of goods and expenses from revenue. In a business plan proposal, an income statement shows the projected profitability of the business over the time frame covered by the plan.

Sources
http://www.investorwords.com/2539/interest_rate.html
http://useconomy.about.com/od/glossary/g/LIBOR.htm
http://useconomy.about.com/od/glossary/g/prime_interest.htm
http://www.entrepreneur.com/encyclopedia/term/82202.html