Shared Flashcard Set

Details

BL 2.03
Vocab
25
Business
11th Grade
02/21/2012

Additional Business Flashcards

 


 

Cards

Term
Assets
Definition
Items of value owned by the business.
Term
Contingency fund
Definition
Cash that is set aside for unexpected needs of the business.
Term
Continuing costs
Definition
The ongoing expenses resulting from the operation of the business
Term
Credit unions
Definition
Cooperatives formed by labor unions or employees for the benefit of the members.
Term
Credit-worthy
Definition
Willing and able to repay a debt
Term
Debt sources
Definition

Sources of funding that require the money borrowed to be paid back with interest.

Term
Equity sources
Definition

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.

Term
Expenses
Definition
The cost of doing business; all business expenses except the cost of goods sold.
Term
Fixed costs
Definition
Expenses that remain the same for a period of time; must be paid regardless of the quantity of a good or service produced/sold.
Term
Government agencies
Definition
Operated by the government to provide technical assistance, counseling, grants, or other means of financial assistance at low-interest rates
Term
Liabilities
Definition
Debts owed by the business
Term
Lines of credit
Definition
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
Term
Long-term loan
Definition
Borrowed money that is repayable over a period longer than a year
Term
Net worth
Definition
The monetary value of the business; assets minus liabilities
Term
Personal expenses
Definition
Expenses incurred by the entrepreneur for goods and services for personal use rather than for use in the business
Term

 

Private investors (angels)

Definition
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
Term
Repayment plan
Definition
plan indicating how and when debts of the business will be paid.
Term
Secured loan
Definition
A loan that is backed by collateral
Term
Short‑term loan
Definition
Borrowed money that must be repaid within one year
Term
Start‑up costs
Definition
One-time expenses an entrepreneur incurs when starting a business
Term
State-sponsored venture capital funds
Definition
Funds provided to entrepreneurs by the state in an effort to encourage economic development and creation of jobs
Term
Trade credit
Definition
Short-term financing that allows an entrepreneur credit from vendors within the business’s industry or trade.
Term
Unsecured-loan
Definition
A loan that is not guaranteed by collateral
Term
Variable costs
Definition
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.
Term
Venture capitalists
Definition
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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