4.00

Front 1

Assets:

Back 1

Items of value owned by the business.

Front 2

Contingency fund

Back 2

Cash that is set aside for unexpected needs of the business.

Front 3

Continuing costs:

Back 3

The ongoing expenses resulting from the operation of the business.

Front 4

Credit unions:

Back 4

Cooperatives formed by labor unions or employees for the benefit of the members.

Front 5

Credit-worthy:

Back 5

Willing and able to repay a debt.

Front 6

Debt sources:

Back 6

Sources of funding that require the money borrowed to be paid back with interest.

Front 7

Equity sources:

Back 7

Capital sources that trade cash for some portion of ownership in the business; sometimes called risk capital because the investor puts his/her money at risk.

Front 8

Expenses:

Back 8

The cost of doing business; all business expenses except the cost of goods sold.

Front 9

Fixed costs:

Back 9

Expenses that remain the same for a period of time; must be paid regardless of the quantity of a good or service produced/sold.

Front 10

Government agencies:

Back 10

Operated by the government to provide technical assistance, counseling, grants, or other means of financial assistance at low-interest rates.

Front 11

Liabilities:

Back 11

Debts owed by the business.

Front 12

Lines of credit:

Back 12

Agreements made by a bank to lend money at a stated interest rate whenever the owner needs it. A fee is charged for the privilege whether the money is used or not, and interest is charged on any money that is used.

Front 13

Long-term loan:

Back 13

Borrowed money that is repayable over a period longer than a year.

Front 14

Net worth:

Back 14

The monetary value of the business; assets minus liabilities.

Front 15

Personal expenses:

Back 15

Expenses incurred by the entrepreneur for goods and services for personal use rather than for use in the business.

Front 16

Private investors (angels):

Back 16

Wealthy individuals functioning as non-professional investors who are willing to invest in local businesses for financial or emotional reasons and who sometimes prefer to remain anonymous.

Front 17

Repayment plan:

Back 17

A plan indicating how and when debts of the business will be paid.

Front 18

Secured loan:

Back 18

A loan that is backed by collateral.

Front 19

Short term loan:

Back 19

Borrowed money that must be repaid within one year.

Front 20

Start up costs:

Back 20

One-time expenses an entrepreneur incurs when starting a business.

Front 21

State-sponsored venture capital funds:

Back 21

Funds provided to entrepreneurs by the state in an effort to encourage economic development and creation of jobs.

Front 22

Trade credit:

Back 22

Short-term financing that allows an entrepreneur credit from vendors within the business’s industry or trade.

Front 23

Unsecured-loan:

Back 23

A loan that is not guaranteed by collateral.

Front 24

Variable costs:

Back 24

Expenses that may change from month to month depending on the needs of the business; costs that increase and decrease with the quantity of the good or service produced/sold.

Front 25

Venture capitalists:

Back 25

Individuals or firms that invest money professionally to make money, expect a large capital gain, and look for high growth potential.