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25 Cards in this Set
- Front
- Back
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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Personal expenses:
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Expenses incurred by the entrepreneur for goods and services for personal use rather than for use in the business.
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Private investors (angels):
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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.
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Repayment plan:
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A plan indicating how and when debts of the business will be paid.
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Secured loan:
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A loan that is backed by collateral.
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Short term loan:
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Borrowed money that must be repaid within one year.
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Start up costs:
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One-time expenses an entrepreneur incurs when starting a business.
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State-sponsored venture capital funds:
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Funds provided to entrepreneurs by the state in an effort to encourage economic development and creation of jobs.
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Trade credit:
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Short-term financing that allows an entrepreneur credit from vendors within the business’s industry or trade.
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Unsecured-loan:
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A loan that is not guaranteed by collateral.
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Variable costs:
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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.
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Venture capitalists:
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Individuals or firms that invest money professionally to make money, expect a large capital gain, and look for high growth potential.
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