| A | B |
|---|
| assets | Items of value owned by a business |
| collateral | Property that the borrower forfeits if he or she defaults on the loan |
| debt capital | Money loaned to a business with the understanding that the money will be repaid, with interest, in a certain time period |
| depreciation | The lowering of the value of an asset to reflect its current value |
| equity capital | money invested in a business in return for a share in the business's profits |
| liabilities | The amounts owed to other individuals or businesses |
| operating expenses | Expenses incurred by a business each month |
| pro forma financial statements | financial statements based on the projected revenues and expenses |
| security precautions | the steps one takes to protect oneself against different types of business risks |
| shoplifting | the act of knowingly taking items from a business without paying for them |
| start-up costs | the one-time-only expenses that are paid to establish a business |
| venture capitalists | individuals or companies that make a living investing in start-up companies |
