| 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 becauase 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 remai 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 aat 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 inventors (angels) | 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 on 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 business's 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 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 |
