Finances
Individuals that make small investments in an enterprise or to support an entrepreneur where they do not expect an immediate or large return on investment
Angel investors
When two or more individuals own a company. Partners are taxed on the profits of the company, and are personally liable for any debts or judgements against the community.
Partnership
Allows a entrepreneur to launch a new business
launch plan
The right to take possession of collateral until a debt is repaid: begins with L
lien
A determination of how many units are needed to sell in order to pay for all fixed costs.
breakeven analysis
Funds contributed by investors to a business
equity
The merchandise that a company sells to costumers
inventory
A situation in which an individual might take an action to her advantage that would be to the disadvantage of a person or company that believes this individual is serving them
conflict of interest
One of the equal parts into which a company capital is divided, entitling the holder to a proportion of the profits: begins with S
Share
A credit- worthy individual or business with sufficient liquidity that promises to repay a loan in the event that the debtholder cant make a required payment
guarantor
Costs that vary somewhat based on the number of units you sell
Semi variable costs
Distinguishing a product or service ‘different than anything else’ attracting customers, generating sales and serving as the foundation for a thriving business.
Differentiated Offering
An individual’s self commitment to overcome obstacles to achieve long term goals
grit
Ratios a lending company calculates about an individual or a company:2 words; begins with L and R
Liquidity ratios
Required forms that a company must complete and submit to the appropriate government agency
legal fillings
Costs that a business incurs that are not part of producing the goods or services it sells, but which are required to operate leally and efficiently
Overhead
The hard work a small business owner puts into forming, founding and operating his business.
sweat equity
When an entrepreneur’s actions and decisions are guided by a set of beliefs about how he wants the business to succeed
Mission driven
Revenues minus cost
profit
Assets that are not already pledged s a guarantee to repay another loan
Unencumbered
Unit price minus cost of goods sold
Profit per unit
An investment vehicle. Different types of securities include stocks, bonds and mutual funds
security
Another type pf debt other than a mortgage
Notes payable
the amount of money borrowed: begins with p
principal
A legal agreement that an assets is part of a guarantee to a lender
pledged