| A | B |
|---|
| Assets | Items of value owned by the business |
| Contingency Fund | Cash that is set aside for unexpected needs of the business |
| Continuing Costs | The ongoing expenses resulting from the operation of the business |
| Credit Unions | Cooperatives formed by labor unions or employees for the benefit of the members |
| Credit-Worthy | Willing and able to repay a debt |
| Debt Sources | Sources of funding that require the money borrowed to be paid back with interest |
| Equity Sources | 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 |
| Expenses | The cost of doing business; all business expenses except the cost of goods sold |
| Fixed Costs | Expenses that remain the same for a period of time. |
| Government Agencies | Operated by the government to provide technical assistance, counseling, grants, or other means of financial assistance at low-interest rates |
| Liabilities | Debts owed by the business |
| Lines of Credit | Agreements made by a bank to lend money at a stated interest rate whenever the owner needs it. |
| Long-Term Loan | Borrowed money that is repayable over a period longer than a year |
| Net Worth | The monetary value of the business; assets minus liabilities |
| Personal Expenses | Expenses incurred by the entrepreneur for goods and services for personal use. |
| Private investors (angels): | Wealthy individuals functioning as non-professional investors who are willing to invest in local businesses for financial or emotional reasons. |
| Repayment Plan | A plan indicating how and when debts of the business will be paid |
| Secured Loan | A loan that is backed by collateral |
| Short Term Loan | Borrowed money that must be repaid within one year |
| Start Up Costs | One-time expenses an entrepreneur incurs when starting a business |
| State-sponsored Venture Capital Funds | Funds provided to entrepreneurs by the state in an effort to encourage economic development. |
| Trade Credit | Short-term financing that allows an entrepreneur credit from vendors. |
| Unsecured-Loan | A loan that is not guaranteed by collateral |
| Variable Costs | Expenses that may change from month to month depending on the needs of the business. |
| Venture Capitalists | Individuals or firms that invest money professionally to make money for a large capital gain. |
