| 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; must be paid regardless of the quantity of a good or service produced/sold. |
| 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. A fee is charged for the privilege whether the money is used or not, and interest is charged on any money that is used. |
| 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 rather than for use in the business. |
| Private Investors | 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. |
| 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 and creation of jobs. |
| Trade Credit | Short-term financing that allows an entrepreneur credit from vendors within the businesss industry or trade. |
| 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; costs that increase and decrease with the quantity of the good or service produced/sold. |
| Venture Capitalists | Individuals or firms that invest money professionally to make money, expect a large capital gain, and look for high growth potential. |
