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Miscellaneous
Expenses
Loans
Funding
Vocabulary
100
Initial inventory for the business.
What is start-up cost?
100
Expenses that do NOT remain the same from month to month.
What is variable costs.
100
The most common source of business fianancing.
What is bank?
100
When seeking a loan, an entrepreneur who has capacity.
What is demonstrates the ability to repay the debt.
100
Wealthy individuals functioning as non-professional investors who are willing to invest in local businesses.
What is angels?
200
The length of a short-term loan.
What is one year?
200
Expenses that are NOT affected by sales volume.
What is fixed costs?
200
The repayment of a long-term loan.
What is more than one year?
200
A source of funding that requires money borrowed to be paid back with interest.
What is debt?
200
A form of short-term financing from within the industry.
What is trade credit?
300
A government agancy that uses a commercial bank to make loans to businesses and then guarantees up to 90% of the loan if the business fails.
What is SBA?
300
Advertising and promotion expenses for an ongoing business.
What is variable costs?
300
Money invested in a business by private investors.
What is Equity funding?
300
Funding that is borrowed from family or friends is sometimes called
What is love money?
300
One-time expenses incurred by the entrepreneur when beginning a business.
What is start-up costs?
400
Deposits paid prior to opening the business to connect utility services for a new business are considered.
What is start-up costs?
400
Miscellaneous expenses incurred by the entrepreneur for clothing, travel and entertainment.
What is personal expenses?
400
A loan that is granted to a bank's most credit-worthy customers and is not guaranteed by collateral.
What is unsecured loan?
400
Capital contributed by the owner(s) of a business.
What is equity?
400
A prearranged loan at an established rate available whenever the business owner needs it.
What is line of credit?
500
Ability and willingness to invest personally in a business venture satisfies the credit requirement for
What is capital?
500
Bobby's Restaurant sets aside $500 a month to cover unexpected expenses.
What is contingency fund?
500
A federal agancy that provides grants to cities for loans to private developers to help improve impoverished areas.
What is HUD?
500
One advantage of using personal savings to fund a sole proprietorship.
What is owner retains all profits.
500
Something of value that the lender can claim if the debt is not repaid.
What is collateral?