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14 Cards in this Set
- Front
- Back
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Assets
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Items of value owned by the business.
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Contingency fund:
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Cash that is set aside for unexpected needs of the business
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Continuing costs
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The ongoing expenses resulting from the operation of the business.
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Credit unions
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Cooperatives formed by labor unions or employees for the benefit of the members.
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Credit-worthy
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Willing and able to repay a debt.
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Debt sources
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: Sources of funding that require the money borrowed to be paid back with interest.
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Equity sources
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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.
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Expenses
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The cost of doing business; all business expenses except the cost of goods sold.
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Fixed costs
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Expenses that remain the same for a period of time; must be paid regardless of the quantity of a good or service produced/sold.
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Government agencies
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Operated by the government to provide technical assistance, counseling, grants, or other means of financial assistance at low-interest rates.
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Liabilities
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Debts owed by the business
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Lines of credit
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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.
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Long-term loan
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Borrowed money that is repayable over a period longer than a year.
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Net worth
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The monetary value of the business; assets minus liabilities.
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