Glossary 4

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

Assets

Back 6

Items of value owned by the business.

Front 7

Debt sources:

Back 7

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

Front 8

Contingency fund:

Back 8

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

Front 9

Equity sources

Back 9

: 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 10

Continuing costs:

Back 10

The ongoing expenses resulting from the operation of the business

Front 11

Expenses:

Back 11

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

Front 12

Credit unions:

Back 12

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

Front 13

Fixed costs:

Back 13

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 14

Credit-worthy:

Back 14

Willing and able to repay a debt

Front 15

Government agencies:

Back 15

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

Front 16

Debt sources:

Back 16

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

Front 17

Equity sources

Back 17

: 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 18

Expenses:

Back 18

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

Front 19

Fixed costs:

Back 19

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 20

Government agencies:

Back 20

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

Front 21

Liabilities

Back 21

Debts owed by the business

Front 22

Lines of credit

Back 22

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 23

Long-term loan:

Back 23

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

Front 24

Net worth

Back 24

The monetary value of the business; assets minus liabilities.

Front 25

Personal expenses

Back 25

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

Front 26

Liabilities

Back 26

Debts owed by the business

Front 27

Private investors (angels):

Back 27

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 28

Lines of credit

Back 28

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 29

Repayment plan

Back 29

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

Front 30

Long-term loan:

Back 30

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

Front 31

Net worth

Back 31

The monetary value of the business; assets minus liabilities.

Front 32

Secured loan

Back 32

A loan that is backed by collateral

Front 33

Short term loan

Back 33

Borrowed money that must be repaid within one year

Front 34

Personal expenses

Back 34

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

Front 35

Start up costs

Back 35

One-time expenses an entrepreneur incurs when starting a business

Front 36

Private investors (angels):

Back 36

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 37

Repayment plan

Back 37

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

Front 38

Secured loan

Back 38

A loan that is backed by collateral

Front 39

Short term loan

Back 39

Borrowed money that must be repaid within one year

Front 40

Start up costs

Back 40

One-time expenses an entrepreneur incurs when starting a business

Front 41

State-sponsored venture capital funds

Back 41

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

Front 42

Trade credit

Back 42

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

Front 43

Unsecured-loan:

Back 43

A loan that is not guaranteed by collateral

Front 44

Variable costs

Back 44

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 45

Venture capitalists:

Back 45

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