| A | B |
|---|
| equity | ownership |
| risk capital | equity funding |
| angels | coined term for nonprofessional investors who tend to put their money into local businesses |
| venture capitalists | individuals or firms that invest capital professionally |
| line of credit | an amount of money that a bank agrees to lend a business at a certain interest rate |
| trade credit | credit obtained from within one's industry or trade, usually from one's suppliers |
| capacity | element of a legal contract stating that you are legally able to enter into a binding agreement |
| collateral | items of value that a lender can claim if a business doesn't repay its loan |
| stock | certificates indicating the amount of equity each investor has in a business |
| working capital | the amounf of cash a business needs in order to carry on with its daily operations |
| contingency funds | extra funds that are calculated into the start-up needs and can be used to cover unforeseen business expenses |
| variable costs | business expenses that change with each unit of product produced |
| fixed costs | expenses that don't change with number of units produced |
| start up costs | One-time expenses incurred when starting a business |
| continuing costs | Ongoing expenses resulting from the operation of the business |
| equity sources | capital sources that trade cash for some portion of ownership in the business |
| debt sources | sources of funding that require the money borrowed to be paid back with interest |
