| A | B |
|---|
| Service Business | A business that performs an activity for a fee. |
| Entrepreneur | A business owned by one person. |
| Assets | Anything of value that is owned. |
| Equity Financing | Financial rights, percent of ownership, of a business. |
| Liability | An amount owed by a business. |
| Owner’s Equity | The amount remaining after the value of all liabilities is subtracted from the value of all assets. |
| Capital | The account used to summarize the owner’s equity in the business. |
| Balance Sheet | A financial statement that reports assets, liabilities, and owner’s equity on a specific date. |
| Cash and Owner's Capital | Received cash from owner as an investment. |
| Market research | Gathering information about a business |
| market | Everyone that might purchase a product. |
| cash flow | Money moves into and out of a business. |
| business plan | A written statement of goals. |
| mission statement | A sentence that describes the purpose of a business. |
| start-up capital | Money needed to open a business. |
| Pro forma financial statements | based on estimates of future business. |
| Pro forma income statement | projects the revenue and expenses |
| Pro forma cash flow statement | reports anticipated sources of cash |
| Capital structure | How a business is financed |
| Debt financing | Borrowing money to use in a business. |
| Collateral | An asset pledged that may be used if loan defaults. |
| Venture capital | Money invested in a business by investors. |
| Angel Investors | Private investors that do not participate in the business. |
