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Chapter 7 Vocabulary (Entrepreneurship Ideas In Action)

Operating ExpensesExpenses that are incurred by a business every month.
Pro Formal Financial StatementFinancial statements based on projected revenues and expenses.
DepreciationThe lowering of the value of an asset to reflect its current worth.
AssetsItems of value owned by a business.
Start-up CostsOne-time-only expenses that are paid to establish a business.
ShopliftingAct of knowingly taking items from a business without paying.
Collateral7. Property that the borrower forfeits if he or she defaults on the loan.
Debt CapitalMoney loaned to a business with the understanding that the money will be repaid, with interest, in a certain time period.
Equity CapitalMoney invested in a business in return for a share in the business’s profits.
Venture CapitalistsIndividuals or companies that make a living investing in start-up companies.
Security PrecautionsSteps taken to protect yourself against different kinds of risk.

Career Management Teacher
South Robeson High School
Rowland, NC

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