| A | B |
|---|
| Assets | Items of value, owned by the business |
| Contingency fund | Cash that is set aside for unexpected needs of the business |
| Continuing cost | 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 the ownership in the business; sometimes called risk capital, because 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 remain 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 at low-interest rates |
| Liabilities | Debts owned 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 this 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 | A 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 investors (Angels) | Wealthy individuals functioning for 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 one 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 with and the business's industry or trait |
| 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 the 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 |
