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| Items of value owned by the business. |
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| Cash that is set aside for unexpected needs of the business |
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| The ongoing expenses resulting from the operation of the business |
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Cooperatives formed by labor unions or employees for the benefit of the members. |
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| Willing and able to repay a debt |
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Sources of funding that require the money borrowed to be paid back with interest. |
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Capital sources that trade cash for some portion of ownership in the business; sometimes called risk capital because the investor puts his/her money at risk. |
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The cost of doing business; all business expenses except the cost of goods sold.
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| Expenses that remain the same for a period of time; must be paid regardless of the quantity of a good or service produced/sold |
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Operated by the government to provide technical assistance, counseling, grants, or other means of financial assistance at low-interest rates. |
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| Debts owed by the business. |
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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.
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Borrowed money that is repayable over a period longer than a year.
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The monetary value of the business; assets minus liabilities. |
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| Expenses incurred by the entrepreneur for goods and services for personal use rather than for use in the business |
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Private investors (angels): |
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| ): 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. |
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| A plan indicating how and when debts of the business will be paid. |
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| A loan that is backed by collateral |
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Borrowed money that must be repaid within one year. |
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One-time expenses an entrepreneur incurs when starting a business.
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| State-sponsored venture capital funds: |
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: Funds provided to entrepreneurs by the state in an effort to encourage economic development and creation of jobs. |
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| Short-term financing that allows an entrepreneur credit from vendors within the business’s industry or trade |
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| A loan that is not guaranteed by collateral |
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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. |
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| : Individuals or firms that invest money professionally to make money, expect a large capital gain, and look for high growth potential |
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