Money
the money invested in a project
Capital
process of analyzing exposure to risk and determining how to best handle such exposure
risk management
insurance which covers replacement costs and loss of income
property insurance
process of starting your own business
entrepreneurship
assets expected to convert to money within the year
current assets
money raised from within the company or by selling part of the company interest
equity capital
risks occurring from natural disasters such as floods, droughts and tornadoes
Natural risks
contract between a business and an insurance company covering a certain business risk
insurance policy
business organization with a single owner and operator of a business; no partners or shareholders
sole proprietorship
the summary of a business’s assets, liabilities and equity
balance sheet
money raised by borrowing money to be repaid later
debt capital
risks occurring from fluctuations in business conditions such as competition, inflation, recession or government policies
economic risks
insurance which will usually cover expenses when businesses, individuals and products are found liable because of injury or other damage
liability insurance
legal agreement between two or more people to be responsible for a business
partnership
assets used over a long period to operate the business
fixed assets
a member only cooperative created by labor unions or groups of employees
credit union
risks occurring because of human errors and the unpredictable nature of employees and the work environment
Human risks
insurance which covers the owners or managers of a business; owners of a business are usually required to have life insurance before they qualify for a loan
life insurance
partners share in the profits and losses of the business; both are equally liable for company debts
general partnership
debts expected to be paid off within the year
current liabilities
a projection of what it will cost for the first year of operation
costs which must be paid throughout the business life
continuing costs
promise made by the manufacturer concerning the performance or quality of a product or service
product/service warranty
most complicated form of business; business granted a charter recognizing it as a separate legal entity having its own rights, privileges and liabilities distinct from those of its members
corporation
shows when a company expects cash coming into the business and cash paid out
cash-flow statement